Six years ago, my mother received a telephone call claiming that her grandson was in trouble. Someone purporting to work for a local police station told her that my nephew, recently sworn in as an officer, had been arrested for drunk driving. All she needed to do was post bail and he wouldn’t be charged.
Another man who sounded roughly like my nephew took the phone, appearing upset. Luckily, my mother sensed something was off and said she’d call back. She rang me, and I reached my nephew, who was safe at home. Scammers had likely used information they found about my nephew and parents online to attempt a convincing con.
These types of “grandparent schemes” continue today, only now they’re more sophisticated. In 2022, total losses from internet crime were estimated to be $10.3 billion, up from $6.9 billion the previous year, according to the FBI.
The true figures are likely much greater, as this only included reported crimes. With the advent of generative artificial intelligence (AI) — capable of creating text, images, video and audio that closely mimic humans — the risks of falling victim to cyber fraud have further increased. Luckily, you can take steps to protect yourself by being aware when online, protecting against liability and harnessing the power of AI.
An evolving threat
Innovations in AI, and generative AI in particular, are helping cybercriminals up their game. Advanced algorithms make it easier and faster for fraudsters to scrape personally identifying information from social media profiles and other sites to use in attempted breaches and cons.
“ Fraudsters can use AI to create computer-generated audio and videos known as deepfakes to propagate false scenarios. ”
AI can also exponentially speed up the process of testing possible passwords in a cyberattack. Until now, errors in grammar, spelling and style have helped many consumers — and spam filters — detect questionable emails and texts, but tools like ChatGPT can help scammers draft flawless prose for phishing attempts.
Social engineering scams, like the call my mother received, are also getting more effective thanks to AI. These are schemes that trick people into voluntarily parting with their money based on a fake story, such as pretending a family member has been kidnapped or your boss needs you to wire funds.
Besides sending more convincing emails, fraudsters can use AI to create computer-generated audio and videos known as deepfakes to propagate false scenarios. Trained on snippets of someone’s voice and likeness available online, these can look and sound just like people you know. Deepfakes of explicit or embarrassing content can also be used for cyberbullying or cyber extortion schemes. With the powerful capabilities of AI, even the savviest consumers may be at greater risk of falling prey to cyber fraud.
Read: These online scams to steal your money will shock you — even if you think you’ve seen them all
How to protect yourself
Despite the mounting threat, you can take steps to protect yourself from cybercrime:
1. Slow down: Scammers often prey on visceral reactions of fear, confusion or wanting to be helpful by creating a sense of urgency. We all lead busy lives and are fielding dozens — if not hundreds — of emails and texts a day. Despite these pressures, the best thing you can do when facing an unusual request is to slow down. Give yourself time to use common sense and look for details that might give the fraudsters away.
Even if the text of an email or message seems legitimate, check the email address or phone number. If a message claims to be from your bank, call your financial institution to verify. And if someone says a family member is in trouble, contact your relative first to check. Taking time to do your due diligence goes a long way.
2. Beef up your passwords: We all know robust passwords are important, but many still choose convenience over security. Make sure your passwords don’t include something obvious, such as your birthday or pet’s name, and that you’re not reusing passwords across sites. If you have trouble remembering logins, use a password manager that can create effective passwords for you. Make sure you update your passwords at least every few months. And always choose multi-factor authentication, such as receiving a code via text, whenever possible. Strengthening passwords is a critical safeguard for your personal information.
3. Harness the power of AI: Advances in AI can make you more vulnerable to cybercrime, but they can also help you fight back. We’re still in the early stages, but AI could help make existing defenses, such as spam filters, anti-virus software and virtual personal networks (VPNs), more effective. AI could also make it easier to generate strong passwords and enhance multi-factor authentication. Companies are also developing AI-based tools that can better detect phishing emails and unusual activity on accounts across households and devices. And AI will likely be key to identifying AI-generated spoofs and deepfakes.
4. Protect yourself from liability: Many people assume their financial institutions will reimburse them for losses due to cybercrime, but those protections are limited. For example, they don’t typically apply when people voluntarily send money, when your computer is infected with malware or ransomware, or when you make transactions through a different medium.
A personal cyberinsurance policy can help protect you if you fall victim to a cyberattack. First, check your insurance portfolio to see if you have existing coverage through homeowner’s insurance or another policy, or whether you can purchase an endorsement to add on to those policies.
If not, look for a cyber policy that covers identity theft, data breaches, ransomware attacks, social engineering scams and expenses related to cyber bullying or breach of privacy, including the cost of psychiatric care, relocation, public relations consultants and attorneys’ fees. These policies aren’t just for the wealthy — anyone is susceptible as scams get more sophisticated. Remember that, with devices being increasingly interconnected, you’re as vulnerable as the least savvy member of your household.
Defending yourself in the AI era
In a world where cyber fraud is becoming more widespread and elaborate, every consumer needs to take proactive steps to protect themselves. Generative AI has made it easier for cyber criminals to scrape personal information, perpetrate phishing schemes and dupe victims with deepfakes and social engineering scams. Yet the same technology can also help safeguard against these threats. Along with taking the time to analyze unusual requests, strengthening passwords and obtaining cyber insurance, keep an eye out for rapidly evolving AI-driven tools that can help keep you safe in cyberspace.
Carolyn Boris is vice president, product development manager for Chubb Personal Risk Services.
Plus: White House pledges to crack down on ‘abusive’ data-harvesting companies
This story originally appeared on Marketwatch
