How to Avoid AI-Scams This Holiday Season

U.S. consumers lost $8.8 billion to fraud in 2022 — an increase of 30% over the previous year, according to the Federal Trade Commission (FTC). With this year’s explosion of generative artificial intelligence (AI), that number is only expected to increase.

Naturally, as technology evolves, its potential to be misused increases. This development rings especially true during the holiday season when a festive spirit and frenzied shopping can make people more vulnerable to online scams and fraud. However, with the right information, vigilance, and proactive measures, you can help ensure you and your loved ones don’t fall victim to AI scams.

Common AI Scams

AI-powered scams often use the same methods that have long plagued our society — only now, they’re better disguised. Generative AI can create text, voices, and images that sound and look real, duping more people faster than older scams.

Phishing Emails: In the past, phishing emails from overseas were easier to spot because they’d contain telltale signs, such as poor grammar, misused words, and incorrect spelling. Generative AI can craft phishing emails that sound and look more legitimate, leading more potential victims to open malicious links.

Deepfake Videos and Images: In 2022, imposter scams categorically netted the second largest loss for consumers, according to the FTC. Criminals create highly convincing fake media to impersonate legitimate entities or individuals, often used to deceive or manipulate. This tactic is especially common for dating scams.

AI-Powered Chatbots: Scammers disguised as customer service representatives use phishing emails to lure victims into sharing sensitive information with a chatbot. For example, the chatbot may pretend to be from a social networking site and threaten to shut down your account if you don’t provide them with identifying information. Others pretend to be from delivery companies, claiming they need personal information to deliver a package.

AI-Generated Voice Scams: Scam artists are now able to clone the voices of friends and family using as little as 10 minutes of content. They call the voice-cloned person’s family members pretending they’re in some kind of emergency: They’ve been kidnapped, or they’re in the hospital, or even jail, and need your information and/or money wired quickly to get out of trouble.

Best Practices to Avoid Being Targeted

Today, it’s likely that you or someone you know will be targeted for a scam at some point, but certain practices can make it harder for scammers to contact you or roll out a convincing play.

First and foremost, protect yourself digitally. Don’t put your personal information online. Keep your social media profiles private, and do not accept friend requests from unknown people. Put your passwords on lockdown: Use strong passwords, don’t reuse them, and use an encrypted password manager, such as iCloud Keychain or Dashlane, to keep track. Regularly update your operating system, browser, and security software to protect against malicious threats.

Secondly, avoid answering unknown phone calls or texts. Be wary of urgent messages or calls, and never provide personal details over the phone unless you’ve verified the caller’s identity.

How to Spot Scammers if They Target You

Urgency is the lifeblood of an effective scam. It’s easier said than done but try not to panic. Scammers want you to become flustered, so you don’t think rationally. If you receive a message (e.g., phone call, email, text) pressuring you to take immediate action, stay calm, and proceed with caution.

Make sure to verify the identity of the person you’re speaking with — whether it’s a relative or a corporation. Contact the organization directly using official contact details, not the information provided by the potential scammer. For relatives, choose a safe word or phrase to confirm identities during suspicious interactions.

What to Do if You’re Caught in a Scam

It can be embarrassing to admit you were duped, but it can happen to anyone. If you’ve been scammed, don’t sweep it under the rug. Take these steps to protect yourself from further damage and prevent others from falling for the same scam.

• Lock down your accounts. If financial details were involved, contact your financial institutions (e.g., bank and/or credit card company) immediately. They can place a freeze on your account or prevent certain transactions from going through.
• If your login information was compromised, change passwords, and enable two-factor or bio authentication (e.g., fingerprint and/or facial recognition) wherever possible.
• Place a fraud alert on your credit report and freeze your credit through Experian, TransUnion, and Equifax to prevent identity thieves from opening accounts in your name.
• Gather all evidence associated with the scam. For example, email addresses, receipts, phone numbers, etc.
• If you lost money, possessions, or valuable information, contact your local police department to file a report.
• Report the scam to the FTC at ReportFraud.ftc.gov.
• Visit IdentityTheft.gov to find specific steps on how to protect yourself, depending on the information lost.
• File a complaint with Texas Consumer Protection at texasattorneygeneral.gov/consumer-protection.

Talk to Loved Ones

Vigilance is your best defense against those who seek to exploit the holiday season for malicious purposes. Have conversations with your family members — both young and old — about emerging AI scams. Awareness can protect your family from falling prey to deceptive tactics and keep the holidays merry and bright.

Protect your smart home from hackers with these smart tips.

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