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Criminals Use Generative Artificial Intelligence to Facilitate Financial Fraud
FBI Warning About How Criminals Exploit Generative Artificial Intelligence (AI) to Escalate Fraud, Impersonation, and Extortion Schemes
FBI WARNING – Presented by the SCARS Institute
Authors:
• United States Federal Bureau of Investigation (FBI)
• SCARS Institute Encyclopedia of Scams Editorial Team – Society of Citizens Against Relationship Scams Inc.
Article Abstract
The FBI has issued a warning about the increasing use of generative artificial intelligence (AI) by criminals to execute fraud on a broader and more convincing scale. Generative AI allows these fraudsters to produce realistic text, images, audio, and videos, thereby enhancing the believability of their schemes. This technology is exploited in various fraudulent activities including social engineering, spear phishing, romance, and investment scams, where AI can generate content that appears legitimate, reducing telltale signs of deceit like grammatical errors. AI-generated materials are used to create fake social media profiles, counterfeit documents, and even to impersonate individuals through voice cloning or video manipulation to deceive victims into sending money or divulging sensitive information.
The FBI advises the public to be vigilant, suggesting measures like establishing secret verification phrases with family, scrutinizing media for anomalies, and being cautious with personal information shared online. If one suspects they’ve been scammed, they should report it to the FBI’s Internet Crime Complaint Center, providing detailed information about the interaction and transactions involved.
FBI Warning About How Criminals Exploit Generative Artificial Intelligence (AI) to Escalate Fraud, Impersonation, and Extortion Schemes
Introduction
FBI WARNING
The FBI is warning the public that criminals exploit generative artificial intelligence (AI) to commit fraud on a larger scale which increases the believability of their schemes. Generative AI reduces the time and effort criminals must expend to deceive their targets. Generative AI takes what it has learned from examples input by a user and synthesizes something entirely new based on that information. These tools assist with content creation and can correct for human errors that might otherwise serve as warning signs of fraud. The creation or distribution of synthetic content is not inherently illegal; however, synthetic content can be used to facilitate crimes, such as fraud and extortion.1 Since it can be difficult to identify when content is AI-generated, the FBI is providing the following examples of how criminals may use generative AI in their fraud schemes to increase public recognition and scrutiny.
AI-Generated Text
Criminals use AI-generated text to appear believable to a reader in furtherance of social engineering,2 spear phishing,3 and financial fraud schemes such as romance, investment, and other confidence schemes or to overcome common indicators of fraud schemes.
- Criminals use generative AI to create voluminous fictitious social media profiles used to trick victims into sending money.
- Criminals create messages to send to victims faster allowing them to reach a wider audience with believable content.
- Criminals use generative AI tools to assist with language translations to limit grammatical or spelling errors for foreign criminal actors targeting US victims.
- Criminals generate content for fraudulent websites for cryptocurrency investment fraud and other investment schemes.
- Criminals embed AI-powered chatbots in fraudulent websites to prompt victims to click on malicious links.
AI-Generated Images
Criminals use AI-generated images to create believable social media profile photos, identification documents, and other images in support of their fraud schemes.
- Criminals create realistic images for fictitious social media profiles in social engineering, spear phishing, romance schemes, confidence fraud, and investment fraud.
- Criminals generate fraudulent identification documents, such as fake driver’s licenses or credentials (law enforcement, government, or banking) for identity fraud and impersonation schemes.
- Criminals use generative AI to produce photos to share with victims in private communications to convince victims they are speaking to a real person.
- Criminals use generative AI tools to create images of celebrities or social media personas promoting counterfeit products or non-delivery schemes.4
- Criminals use generative AI tools to create images of natural disasters or global conflicts to elicit donations to fraudulent charities.
- Criminals use generative AI tools to create images used in market manipulation schemes.
- Criminals use generative AI tools to create pornographic photos of a victim to demand payment in sextortion schemes.
AI-Generated Audio, aka Vocal Cloning
Criminals can use AI-generated audio to impersonate well-known, public figures or personal relations to elicit payments.
- Criminals generate short audio clips containing a loved one’s voice to impersonate a close relative in a crisis situation, asking for immediate financial assistance or demanding a ransom.
- Criminals obtain access to bank accounts using AI-generated audio clips of individuals and impersonating them.
AI-Generated Videos
Criminals use AI-generated videos to create believable depictions of public figures to bolster their fraud schemes.
- Criminals generate videos for real-time video chats with alleged company executives, law enforcement, or other authority figures.
- Criminals create videos for private communications to “prove” the online contact is a “real person.”
- Criminals use generative AI tools to create videos for fictitious or misleading promotional materials for investment fraud schemes.
Tips to protect yourself
- Create a secret word or phrase with your family to verify their identity.
- Look for subtle imperfections in images and videos, such as distorted hands or feet, unrealistic teeth or eyes, indistinct or irregular faces, unrealistic accessories such as glasses or jewelry, inaccurate shadows, watermarks, lag time, voice matching, and unrealistic movements.
- Listen closely to the tone and word choice to distinguish between a legitimate phone call from a loved one and an AI-generated vocal cloning.
- If possible, limit the online content of your image or voice, make social media accounts private, and limit followers to people you know to minimize fraudsters’ capabilities to use generative AI software to create fraudulent identities for social engineering.
- Verify the identity of the person calling you by hanging up the phone, researching the contact of the bank or organization purporting to call you, and call the phone number directly.
- Never share sensitive information with people you have met only online or over the phone.
- Do not send money, gift cards, cryptocurrency, or other assets to people you do not know or have met only online or over the phone.
- Identifying information about the individuals including name, phone number, address, and email address.
- Financial transaction information such as the date, type of payment, amount, account numbers involved, the name and address of the receiving financial institution, and receiving cryptocurrency addresses.
- Describe your interaction with the individual, including how contact was initiated, such as the type of communication, the purpose of the request for money, how you were told or instructed to make payment, what information you provided to the scammer, and any other details pertinent to your complaint.
Definitions
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Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
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