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How to Outsmart AI Fraud and Scams

Greg Sandler • January 21, 2025

Artificial Intelligence (AI) scams are increasingly being used by cyber-criminals to steal money. Scammers use AI for tactics like phishing emails and “deepfake” voice and video call impersonations that mimic trusted individuals or institutions. AI can also be used to bypass account security measures and enable fraudsters to automate schemes like creating personalized scam messages to trick you.

Because these sophisticated methods make scams and fraud harder to detect, here are the top types of AI fraud and how you can outsmart them.

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Fake identities, aka synthetic identity fraud

Synthetic Identity fraud: Bad actors can use a combination of real and fake information to create a new identity. This is one of the fastest-growing forms of financial fraud.

Synthetic identity fraud – in which bad actors use a combination of real and fake information to create a new identity – is one of the fastest-growing forms of financial fraud.¹

A fabricated identity can be used to fraudulently access your financial accounts or other password-protected accounts.

This type of identity theft often combines some real information, like your social security number, with a fake name or address. Bad actors can then use this bogus identity to open bank or credit card accounts in your name, or even attempt to access your existing accounts.

If a scammer uses your social security number with a fictitious identity it can potentially damage your credit score. A compromised social security number can make it difficult for you to obtain credit under your own identity.

Deepfake scams

AI-generated videos and voices are also being used for fraudulent transactions.² Deepfakes are video, photo, text, or audio recordings that seem real but have been created or manipulated with AI. For example, a deepfake video of a well-known personality or financial expert endorsing a bogus investment scheme can trick people into handing over money.

Criminals also may use a deepfake scam to impersonate a relative or friend calling you for urgent financial help. Like, “Mom, I’ve been in a car accident and I need you to wire me some money right away.”

AI-powered phishing scams

Another growing problem is the use of AI for phishing scams.³ A bad actor may, for instance, use generative AI to write realistic emails or send text messages specifically targeting you by name.

AI can make conversations seem real and try to exploit your emotions. It can also mimic legitimate communications to try to trick you into sharing sensitive information like passwords or bank account numbers.

How to avoid AI scams and fraud

Avoid AI fraud and scams by learning the tactics scammers use to gain unauthorized access to your personal information and accounts.

Take proactive steps, secure your accounts, and stay informed to protect yourself from potential fraudsters:

 

Verify before you trust

Double-check the identity of anyone requesting money or sensitive data from you. Be careful: even if a caller sounds like someone you know or an email appears to have come from a known sender, it could be AI-generated.

When in doubt:

  • Get a callback number and make sure that the call is legitimate before returning the call.
  • Let unknown calls go to voicemail. You can then verify their identity before calling them back.
  • If you think a business or government agency has contacted you, you should end the call and contact them back using their official phone numbers found on their legitimate websites.

Because bad actors are using cybercrime for deception, be suspicious about any request for money or account details. Also, remember that unsolicited offers that seem too good to be true are probably scams.

Use strong, unique passwords

Strong, hard-to-guess passwords are crucial for security.⁴

  • Create passwords that combine upper/lowercase letters, numbers, and symbols.
  • Try to avoid reusing passwords across multiple accounts.
  • For even more peace of mind and security, use a password manager to securely generate and store strong passwords. There are numerous password managers that can help you secure your accounts, like 1Password and NordPass.

Turn on multi-factor authentication (MFA)

You’re probably familiar with MFA. Multi-factor authentication requires two or more verification steps to log in to an account.

Although MFA is increasingly the default setting for many accounts, sometimes you have to opt in. Chime, for example, supports two-factor authentication. When you try to log in to your Chime account and MFA is enabled, Chime texts you a six-digit code to enter in addition to your username and password.

Adding a second layer of authentication protection reduces the likelihood that a bad actor can access your account.⁵ Consider enabling MFA for your critical accounts, including banking, email, and social media.

Protect your personal information

Don’t share your personal information with anyone you don’t trust.

Always limit the personal details you share on social media. For example, if you openly post information like your birthday, address, or your mother’s maiden name, scammers could use these for criminal activity.

Other best practices include:

  • Shred any documents containing sensitive PII when you want to throw them out.
  • Use encryption tools to protect your digital files.
  • Enable password protection to limit other people’s access to your smartphone, laptop, and other devices.

Remember: Chime will never reach out to you and ask for your personal information unless you have already initiated a customer support request.

Be wary of calls and emails asking for money

Unsolicited calls, texts, or emails asking for money are an immediate red flag. If you have any doubts, delete the suspicious text or email.

Urgency in calls or messages is a common fraud tactic. Hang up and call a verified number to confirm the legitimacy of the person or business who supposedly contacted you.

Never click on links or download attachments from unknown senders. Always read emails carefully – scammers can them appear to be from legitimate senders. This precaution will prevent potentially malicious software from infecting your devices.

Monitor your accounts regularly

Reviewing account statements at least monthly is another best practice for protecting against fraud.

  • Check your monthly statements for inaccuracies or unauthorized charges.
  • Enable account notifications when possible to alert you about suspicious activities or large transactions.
  • Review your credit report regularly for unauthorized new accounts or inquiries.

What companies are doing to fight AI fraud

It also is important to do business with financial institutions and companies that are taking steps to combat AI fraud.

Many organizations are, for example, actively combatting AI scams. Companies like Chime are working to implement artificial intelligence fraud detection in banking and to educate customers about AI-driven scams.

Learn to spot AI-driven scams

While AI scams can be tricky, red flags like typos, spelling errors, or poor grammar can be telltale signs of AI-generated texts or videos. Videos with distorted details like odd hands, feet, and teeth are often a clue that what you’re seeing is AI.6 Calls or emails from unknown phone numbers or senders should be treated with suspicion.

Multi-factor authentication and real-time transaction alerts can help you take control of your accounts and finances. If you believe you’ve been the victim of an AI-powered scam or incident, find out how to report fraud and scams.

FAQs

Can AI really sound like someone I know?

Yes, AI-powered voice cloning can mimic someone’s voice quite convincingly. You might consider establishing “code words” with loved ones to verify it is them. Hang up and call them back if you are unsure.

How can I tell if an email, call, or message is fake?

Fake calls or messages often include urgent requests, grammatical errors, or fabricated contact details, so you should always verify who is contacting you through official websites or phone numbers before responding.

How is artificial intelligence used in banking fraud?

AI is used by fraudsters to automate phishing attacks, create synthetic identities, and attempt to bypass account security measures used by financial institutions.

What’s the best way to protect my accounts from AI fraud?

Enable multi-factor authentication (MFA) and use strong, unique passwords to make it harder for bots to access your accounts.

Safety and security through Chime
  • Two-factor & fingerprint authentication
  • Enable instant transaction alerts
  • Freeze your card if lost or stolen
Get Started