Subj : AI is fueling the biggest
To : All
From : Mike Powell
Date : Thu May 01 2025 10:18 am
AI is fueling the biggest financial scams ever - cyber safety experts are
fighting back
Date:
Thu, 01 May 2025 08:49:56 +0000
Description:
The recent Bybit hack has highlighted an alarming trend: cybercriminals are
increasingly leveraging AI alongside advanced social engineering techniques.
FULL STORY
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The recent Bybit hack the largest crypto heist in history has highlighted
an alarming trend: cybercriminals are increasingly leveraging AI alongside
advanced social engineering techniques such as deepfake technology and
targeted phishing to execute financial scams at an unprecedented scale.
The sophistication of these attacks underscores the urgent need for
continuous innovation in cybersecurity to counter evolving threats in the
digital landscape. As AI continues to shape the future of financial fraud,
the primary challenge is ensuring that security measures evolve by
defensively leveraging AI to outpace increasingly intelligent and deceptive
cybercriminal tactics.
How AI is Transforming Scams
The number of financial scams is on the rise, and while not all are driven by
AI, the technology is clearly amplifying both their scale and success rate.
AI is being used to personalize scams, making them more convincing and
difficult to detect. A recent notable example saw deepfake videos of Elon
Musk promoting fraudulent cryptocurrency giveaways, exploiting Musks trusted
public persona.
Victims were lured in through hijacked social media accounts and fake
investment schemes, believing they were engaging with legitimate
opportunities. The scam resulted in over $7 million in stolen funds before it
was detected and shut down.
Another concerning trend is the rise of AI-powered phishing attacks. Unlike
traditional phishing emails, which often contain errors and generic language,
AI-generated phishing campaigns use machine learning to tailor their language
and formatting, significantly enhancing their believability. These attacks
are further enhanced by AI chatbots programmed to engage with victims in real
time, convincing them to divulge sensitive information or transfer funds.
AI is Turning Social Media into a Hotbed for Phishing Scams
AI-powered scams are increasingly being distributed through social media.
Platforms with targeted advertising are becoming prime targets for
fraudsters, enabling precise demographic targeting with highly convincing
scams.
According to Gens Q4/2024 Threat Report, Facebook accounted for 56% of total
identified social media threats, followed by YouTube at 26%, X (formerly
Twitter) at 7%, with Reddit and Instagram each accounting for 5% and 4%.
Scammers exploit these platforms to distribute deceptive online ads
(malvertising), fake e-shops, and phishing campaigns, leveraging AI to
enhance the believability and reach of their schemes.
As AI continues to enhance scam sophistication, social media platforms remain
one of the most vulnerable spaces, requiring both users and businesses to be
increasingly vigilant. Without stronger safeguards, cybercriminals will
continue to manipulate these platforms, making it imperative for security
measures to evolve in tandem with these emerging threats.
The AI Arms Race Between Cybercriminals and Cybersecurity Defenders
While AI is being leveraged by fraudsters, it is also a crucial tool in
countering cybercrime. AI-driven security systems can detect fraudulent
activity in real time by analysing behavioral patterns and identifying
anomalies. These technologies help flag suspicious behavior, detect deepfake
content and prevent financial fraud before it occurs.
AI-powered fraud detection tools can now recognize scam patterns across
multiple platforms, including social media, email and messaging apps .
Automated threat response mechanisms help intercept phishing attacks before
reaching users, while AI-enhanced content verification can identify and
mitigate deepfake scams. As threats continue to evolve, these technologies
play an essential role in securing both individuals and businesses from
financial fraud.
Staying One Step Ahead of AI-Powered Scammers
Individuals should remain vigilant with unsolicited financial requests,
verify identities during high-stakes interactions, and use multi-factor
authentication to secure their accounts. While it's helpful to look for
deepfake indicators like unnatural blinking or mismatched lip movements
AI-generated videos are becoming so realistic that spotting them with the
naked eye is quickly becoming impossible. Thats why its essential to rely on
verification practices, not just visual cues. Avoiding oversharing personal
information on social media is also crucial, as scammers can exploit this
data to craft highly targeted and convincing attacks.
Businesses should adopt a proactive approach. Employee training on AI-driven
scam tactics is essential, as is implementing strict financial verification
procedures that require multiple approvals for large transactions. Companies
should deploy AI-based fraud detection systems to identify anomalies in
financial transactions and proactively monitor brand impersonation attempts
on social media and the web. Additionally, fostering a security-aware culture
within the organization strengthens overall defense.
As AI continues to shape both cyber threats and defenses, security strategies
must evolve at the same rapid pace. Integrating AI-driven security automation
is no longer optional it is essential for staying ahead of increasingly
sophisticated fraud tactics.
This article was produced as part of TechRadarPro's Expert Insights channel
where we feature the best and brightest minds in the technology industry
today. The views expressed here are those of the author and are not
necessarily those of TechRadarPro or Future plc. If you are interested in
contributing find out more here:
https://www.techradar.com/news/submit-your-story-to-techradar-pro
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Link to news story:
https://www.techradar.com/pro/ai-is-fueling-the-biggest-financial-scams-ever-c
yber-safety-experts-are-fighting-back
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