As the financial services industry zeros in on the powers and perils of Artificial Intelligence (AI) technology, much of the focus surrounds the risk of financial institution use of AI. Yet, as technology evolves, so do the tactics of criminals. AI has unfortunately become a powerful tool for fraudsters, allowing them to target both consumers and businesses. And AI-powered scams are becoming increasingly common, threatening the safety and well-being of your accountholders, your employees and your financial institution.
Understanding AI Payment Scams
AI payment scams can take various forms, from phone scams to phishing emails. The technology enables scammers to quickly analyze data from social media and other online platforms, helping them identify potential victims and create personalized scams that are difficult to distinguish from genuine communications.
Look Out for These Common AI-Powered Payment Scams:
Personalized Phishing Emails: Scammers use AI to craft highly personalized and convincing emails to trick recipients into revealing personal information, downloading malware or transferring money to fraudulent accounts.
Spoofed Websites: AI algorithms can manipulate search engine results to make spoofed websites appear at the top of search results. These fake websites closely resemble legitimate ones and are used to collect sensitive information from unsuspecting users.
Stock Market Manipulation: Scammers manipulate stock values using AI algorithms to deceive potential investors into buying stocks at inflated prices, leading to financial losses.
Deepfake Technology: Criminals use AI to create convincing videos or audio recordings that impersonate someone, such as company executives or government officials, to persuade victims into transferring money.
Protecting Your Financial Institution and Your Accountholders
Financial institution employees play a critical role in safeguarding accountholders and your financial institution from these scams. Here are some valuable tips to share with team members and your accountholders:
Be Cautious with Links and Attachments: Don't click on suspicious links or attachments unless you are certain about the sender's legitimacy. Consider calling them using a valid phone number to verify the message.
Verify Email Addresses: Check the sender's email address for legitimacy. Hover over the sender's name to see the actual email address and ensure it matches the company's official domain.
Implement Strong Security Measures: Encourage the use of unique passwords for all accounts and enable multi-factor authentication to add an extra layer of security.
Be Skeptical of Unsolicited Communications: Be cautious about unsolicited phone calls or emails and to verify the authenticity of any requests before taking action.
Keep Software Up to Date: Regularly update software and apply patches to protect against potential vulnerabilities that fraudsters may exploit.
Educate Yourself and Others: Educate accountholders about common scams and encourage them to report suspicious activity.
Financial institution employees have the power to educate and protect your institution and accountholders from the evolving threats of AI payment scams. By sharing these tips and resources, you can empower account holders and team members to make informed decisions and stay safe in the digital world. Together, let's fight back against payment scams and ensure a secure banking experience for everyone.
Here are some resources to help you spread the word:
· EPCOR: AI Payment Scams Did You Know Video and AI Payments Scams toolkit
· American Bankers Association: banksneveraskthat.com
· National Cybersecurity Alliance: staysafeonline.org
We have a variety of fraud-focused videos to help you educate your accountholders about other types of payment scams available on YouTube (@EPCORPymnts). Visit epcor.org for a listing of educational events to help you keep a pulse on the payments industry. Stay vigilant, stay informed and stay safe out there!