Several months ago, a finance worker at a multinational firm in Hong Kong was tricked into paying out $24 million to scammers. The scammers used deepfake technology to pose as the company’s chief financial officer in a video conference call, according to Hong Kong police.
Shockingly, to make it even more convincing, the scammers were able to provide reactions from other members of the company on the video call. It was all staged, the result of sophisticated artificial intelligence computer code that altered and manipulated images and voices to misrepresent the CEO and members of the company as doing or saying something that they really didn’t do or say.
The world is changing, and so are the scams targeting multinational companies and everyday people. In this article, we will explore four new scams you need to be aware of, along with tips to identify them and protect yourself.
1. AI-Powered Scams: When machines seem real.
The scam mentioned above is an example of the introduction of artificial intelligence in the work of scams. AI-driven technologies have given rise to sophisticated scams, ranging from fraudulent phishing emails to deepfake, convincingly real impersonations, posing significant risks to individuals’ financial security.
One of the most prevalent threats stemming from AI is phishing attacks. By leveraging AI, scammers can craft highly convincing emails that mimic trusted institutions or individuals, persuading recipients to disclose sensitive information or accidentally execute fraudulent transactions.
How to Spot It: Be wary of unsolicited emails, texts, phone calls, or video calls asking for account numbers or personal information. Do not click on any links or attachments within them. Always contact the supposed sender directly through a trusted channel (phone number or website listed on your bank statement) to verify the message’s authenticity.
2. Government Account Takeover: Scammers target your trusted accounts.
Government accounts, like Social Security or tax filings, are goldmines for scammers. These accounts often contain a wealth of personal information, like your name, address, and Social Security number. Scammers may use various tactics to target these accounts, including phishing emails with threats of penalties or suspension, or exploit weaknesses in government security systems to gain unauthorized access.
How to Protect Yourself: Never give out personal information or account details over email or phone unless you initiated the contact. Legitimate government agencies will not contact you this way. Always access your government accounts through official websites you bookmarked yourself, not through links in emails.
3. Student Loan Forgiveness Scams: Exploiting debt and hope.
With student loan debt at an all-time high and President Biden proposing ways to forgive the debt, scammers are offering fake forgiveness programs to prey on despair. These scams may promise immediate debt relief or ask for upfront fees to “process” your application.
How to Avoid the Trap: The Department of Education is the only authorized entity for federal student loan forgiveness programs. There are no fees involved, (but there can be income tax liability based on the amount forgiven). Always check information directly with the Department of Education website or a trusted financial advisor.
4. Fake Charity Scams: Beware of those who prey on compassion.
Fraudulent charities preying on people’s generosity are a constant threat. With social media campaigns and online donation requests, it can be difficult to discern the real from the fake.
How to Give Wisely: Research the charity thoroughly before donating. Look for reputable organizations with a proven track record. Verify their registration with charity watchdog groups. When in doubt, donate directly through the charity’s website, not through links in emails or social media posts.
Beyond the Top 4: General Tips to Avoid Scams
- Be Skeptical: If something seems too good to be true, it probably is. Don’t be pressured into making quick decisions or sharing personal information.
- Do Your Research: Always research companies, investments, or charities before giving out any money or personal details.
- Strong Passwords & Two-Factor Authentication: Use strong passwords for all your online accounts and enable two-factor authentication for an extra layer of security. Better yet, read the article on our blog by Josh Myers, How to Be a Password Superhuman, and consider using a password manager.
- Beware of Free Trials: Many scams lure you in with “free trials” that automatically convert to paid subscriptions. Read the fine print before signing up for anything.
- Don’t Share Personal Information Over the Phone: Legitimate businesses will not ask you for personal information over the phone unless you initiated the contact. If you receive a suspicious call, hang up and call the company directly using a trusted phone number.
- Report Suspected Scams: If you suspect you have been targeted by a scam, report it immediately. Here are some helpful resources:
By remaining vigilant, staying informed, and collaborating with trusted advisors, individuals can navigate the complexities of these four new scams and safeguard their assets for the future.