How AI is changing online fraud

Online fraud is becoming more sophisticated by the minute, making it difficult to distinguish between legitimate offers or messages from people you trust and a potential scam. Scammers embrace widely available Artificial Intelligence (AI) tools and use them to send you money or share personal information for financial gain and/or identity theft.

“The scams aren’t really different; they’re the same type of scam,” said Octavia Howell, vice president and chief security officer of Equifax Canada. But now scammers can quickly “scrub” social media and the web to find information about a target victim, create a profile of them, and create a pitch that might grab their attention and trigger an immediate response.

Claiming to be a fan of the artist, scammers send you an email or text announcing a “new tour” urging you to click for a free pass. The old “spray and pray” tactic of blasting out a bunch of messages in the hope that a few people bite is dying out. AI now allows scammers to target people with tailored, persuasive messages that often look polished and legitimate, and, as Howell says, “the chances of someone falling for this scam are huge.”

How to spot an AI scam

Many of the red flags we once relied on—such as misspellings, unusual email addresses or suspicious URLs—are rarely present today. Today we are faced with polished and sophisticated messages which makes it more important than ever to spot subtle clues:

• The message is related to something you did not start. If you didn’t enter a contest to win a car, a free trip, or inquire about plumbing services (for example), the message should raise suspicions. To verify its legitimacy, verify the message by contacting the organization directly using a publicly listed phone number or email address, not a link in the message. The same applies to messages from people you know: reach out using the contact information you already have to confirm that they actually sent it.
• The message tone sounds muted. The invitation looks more formal for a casual event or more relaxed for something formal. “AI is not human, so it’s important to look at anything that sounds or is done,” Howell said.
• The message calls for immediate action. “The urgency is still there,” Howell said of the new breed of AI-assisted scams.
• The offer is really unbelievable. He adds: “If it sounds too good to be true, it is too good to be true.”
• The URL looks off. Hover over the URL (but don’t click!), and notice if there’s anything off like extra characters at the end of a generic domain name. Domain spoofing makes URL addresses look like a real organization.

Help prevent cybercrime

The Canadian Anti-Scam Coalition, a group of 48 organizations that includes Equifax, urges Canadians to always “Stop. Check. Speak up” before dealing with any suspicious messages. Never rush to respond, verify that the request is legitimate, and if you conclude that it is not, report the fraud attempt to the Canadian Anti-Fraud Center. The organization has a new website that specifically targets fraud reporting.

If you find that you have been affected by a scam, it is doubly important to report it. “The best thing you can do is report it so the public knows about it,” Howell said. If you don’t do that it will happen to others too.

Ensuring your online health

For an extra layer of protection against AI-enabled scams and other types of fraud, consider subscribing to a protection service like Equifax Complete Protection. This digital service, starting at $34.95 per month, monitors changes to your Equifax credit report, manages your passwords, protects devices, uses a VPN to encrypt data, helps restore your identity in the event of identity theft and more.

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“Equifax Complete Protection can help protect you and your family from fraud before it happens,” Howell said, “and proactively protect and recover if you are targeted.”

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About Michael McCullough

Michael is a financial writer and editor in Duncan, BC He was previously managing editor of Canadian Business and editorial director of Canada Wide Media. He also writes for The Globe and Mail and BCBusiness.