A woman in Wahpeton, ND, spots and avoids AI fraud using tips she learned from Gate City Bank.

How to Avoid AI Fraud.

Artificial intelligence (AI) is changing the way people work, communicate and access information. Unfortunately, scammers are finding ways to use the same technology to deceive people and steal their money and personal information.

Estimated read time: 4 minutes

Spot the Signs and Protect Yourself from AI Fraud.

Key Takeaways

How – and Why – AI Scams Work
9 Warning Signs to Watch For
How to Spot a Deepfake
How Scammers Find Their Victims
9 Ways to Protect Yourself Against AI Fraud

AI-powered scams can look and sound convincing, making it more important than ever to slow down, stay skeptical and verify what you’re seeing or hearing.

“Many people believe they could easily spot a scam, but AI technology has made fraud attempts much more convincing,” says Todd Oliver, Fraud Alert & Investigation Supervisor at Gate City Bank. “Scammers can create realistic voices, messages and even videos that appear to come from someone you know and trust.”

Artificial intelligence is computer software that can solve problems, understand speech and create images by finding patterns in large pools of data – and scammers are using it to trick people out of their money and personal data.

How – and Why – AI Scams Work.

Because they combine technology with manipulation, AI scams can be especially effective. They’re often:

Cheap and instant

A voice can be cloned from just a few seconds of audio, and a fake video can be created in minutes.
Personalized

AI can write customized messages in any language.
Built on trust

Scammers can impersonate people and brands you already know, such as family members, coworkers or your bank.
Emotionally engineered

Messages are designed to use fear, urgency or secrecy so you act before you have time to think.

For example: A woman received a call from someone she thought was her granddaughter. The caller claimed to have been in an accident, detained and desperately needed bail money. The caller sounded like her granddaughter, so the woman handed $6,000 in cash to a courier who even provided a receipt.

The problem was the voice had been cloned using AI, and the courier was part of the scam. A familiar voice is no longer proof of identity.

Pro Tip:

To avoid imposter scams, stop and verify through a channel you trust and consider establishing a private family code word that can be used during emergencies.

9 Warning Signs to Watch for.

Many scams follow similar patterns. Be especially wary if someone:

Pinpoints your vulnerabilities.
Quickly gains your trust.
Uses urgency or pressure.
Won’t take no for an answer.
Shows no remorse.
Asks for unusual payment, such as gift cards, cryptocurrency, wire transfers or sending cash by courier.
Does something out-of-character or reaches out in an unfamiliar way.
Is emotionally manipulative such as through fear, romance or promises of a reward.
Insists on secrecy or requests private information such as passwords or one-time codes.

“Urgency is one of the biggest warning signs,” Todd explains. “Scammers want people to act quickly before they have time to think. Any request that creates panic or demands immediate action deserves a second look.”

How to Spot a Deepfake.

Deepfakes are AI-generated videos, images or audio recordings designed to appear real, and they often have common warning signs.

On video, watch for:

Blurry or distorted edges around the face, hair or teeth.
Unnatural blinking or eyes that don’t quite track.
Lighting and shadows that don’t match the scene.
Audio that is slightly out of sync with lip movements.

On a call or audio recording, listen for:

Flat, robotic tone or unusual emotional pacing.
Strange breathing, pauses or clipped words.
Background noise that cuts in and out.
An inability to answer a personal question only that person would know.

How Scammers Find Their Victims.

Before making contact, scammers often gather information by:

Finding your contact information.
Tracking you on social media.
Joining groups you belong to.
Going door to door.
Discovering your vulnerabilities.

9 Ways to Protect Yourself Against AI Fraud:

Share less audio, video and personal information publicly.
Change your social media posting audiences to “Friends Only.”
Use platform settings that limit past public posts.
Restrict who can see your friends list.
When possible, turn off search engine indexing for social media profiles.
If a call seems unusual, hang up and call back using a number you know and trust.
Use a secret code word or phrase with family and close friends.
Add multi-factor authentication to accounts that hold personal information, including online banking.
Never send cash, gift cards, cryptocurrency or wire transfers while under pressure.

Pro Tip:

If you think you’ve encountered fraud, report it through ic3.gov, ReportFraud.ftc.gov or contact us. We’re happy to help.

Contact Gate City Bank

“AI can make scams look and sound very real, which is why healthy skepticism is one of your best defenses,” Todd remarks. “Whenever something seems urgent, unusual or out of character, slow down and confirm the situation before sharing information or sending money."

Bottom line: With the help of AI, scammers have become even more convincing, but you can protect yourself. If something feels urgent, unusual or too personal, pause and verify through a trusted source before you act.