Scammers Exploit AI, Phone Spoofing: Expert Offers Defense Strategies

Scammers are increasingly leveraging advanced tactics, including artificial intelligence and phone number spoofing, to defraud individuals, with cybercrime losses reaching nearly $21 billion last year. Investment fraud alone accounted for $8.65 billion in victim losses, according to FBI data.

Kurt Knutsson, a cybercrime expert, highlighted the growing sophistication of these scams in a recent appearance, warning that criminals are outpacing government defenses due to a lack of adequate tools. He shared strategies to combat these evolving threats, emphasizing the importance of controlling communication and avoiding panic.

One primary tactic involves phone spoofing, where scammers manipulate caller ID to display legitimate company names and phone numbers, including those of banks. These scammers may also possess personal information, such as account numbers or Social Security details, to lend credibility to their fraudulent calls. The goal is often to create a sense of urgency, prompting victims to act rashly without clear thinking.

Knutsson advises a critical first step: do not answer calls from numbers or companies you are not expecting. If a legitimate institution like a bank or a tech company contacts you unexpectedly, it is likely a scam. If a message is left, do not call back the number provided. Instead, locate a trusted contact number for the institution. This can be found on the back of a bank card, an old statement, or the company's official website.

When responding to suspicious voicemails, texts, or emails, it is crucial to avoid providing sensitive information, such as security codes sent to a phone. Scammers may request these codes to gain access to accounts and drain funds. Always verify such requests by contacting the company directly through a verified channel.

The tactic of creating urgency is a cornerstone of many scams. Scammers pressure individuals into immediate action, such as withdrawing funds, purchasing gift cards, or divulging information, by fabricating emergencies. Knutsson stresses that any demand for urgent action or secrecy, like being told not to contact the police or bank, should be a red flag. In such situations, it is advisable to pause, disengage, and contact a financial institution or law enforcement for guidance.

With the advent of AI, even voices can be mimicked. To counter voice-cloning scams, Knutsson suggests establishing a private code phrase with family members. This phrase can be used to verify identity if a loved one's voice is used in a suspicious call.

By remaining diligent, taking control of communications, and defusing the sense of urgency, individuals can better protect themselves from these pervasive financial threats.