AI scams are on the rise – here’s how to stay safe

Whether you love it, loathe it, rely on it or have never tried it, artificial intelligence (AI) is fundamentally changing the way we use technology. But with the advancements of AI come new risks – and new ways for it to be manipulated by scammers.

Scammers are using increasingly powerful AI tools to make their schemes more sophisticated and harder to detect. We spoke to Alex, a Senior Fraud Analyst at Bank Australia who helps investigate complex scams, about how AI is evolving the threat landscape and how to protect yourself online.

AI is making scams look professional

While it’s difficult to verify exactly how much scammers are using AI, Alex says the signs are clear in the quality of scams Bank Australia is seeing. “We can’t say for certain, but I would assume AI is definitely being used in scams given how much more well-developed, convincing and professional-looking the content is that scammers are deploying,” Alex says.

One of the biggest changes is that legitimate-looking websites can now be created with a few clicks of a button. “AI can quickly generate and replicate websites,” Alex says. “If one gets pulled down, scammers can make another one and get it live just as easily. They have all of the tools in their hands to replicate whatever website they want – eToll, myGov, Australia Post, and so on – and make it look almost identical, just with a different link.”

Investment scams have become alarmingly common

Alex says fake AI-generated investment websites have become particularly advanced. “We have seen AI be used as a tool to generate extremely convincing websites,” he says. “Typically, a few years ago, a scam investment website would look really shoddy. The graphic design would be poor, there’d be spelling mistakes, it would just not be well put together. The ones we see now have AI-generated images of CEOs and staff members. They’ll link to other companies and create fake endorsements to create an established network and reputation to build trust. It looks so convincing.”

Ironically, many of these scams promise AI-powered investment returns. “AI is a buzzword these days,” Alex says. “People hear about it on the news and want to ‘buy into’ it. There’s a big misunderstanding about what it is and what it can do, and that’s a big problem with people getting into scams.”

Alex notes that these AI-related investment scams are often among the highest loss cases Bank Australia sees.

As AI sounds more ‘human’, romance scams and deep fakes are on the rise

AI isn’t just creating fake websites – it’s also helping scammers communicate more naturally. “AI tools can pick up your way of speaking, so I believe that’s being used by scammers to have more natural conversations with fewer red flags,” Alex says. “We are seeing a big rise in romance scams and investment scams, which both rely heavily on conversations and grooming. I can only assume scammers are using these tools to prompt responses that seem real and genuine.”

As deepfake technology – realistic fake photos, videos and audio of real people that often appear online – improves dramatically, it has also become a powerful tool for scammers. “We’re seeing a lot of deepfake celebrity endorsement scams,” Alex says, citing examples of politicians and business figures appearing to endorse investment opportunities when in reality they haven’t.

“It’s getting harder to tell what’s real,” Alex says. “The motions of a deepfake video image used to look quite static, like a puppet, but now it’s really fluid and it can look like that person is genuinely spruiking something. To someone who is highly digitally literate, they may be able to spot that it’s fake, but even that distinction is becoming more difficult. Either way, although anyone can be tricked by a scammer, the people who are caught up in AI scams are sometimes older or not as well-versed on the internet.”

How to protect yourself

Despite the sophisticated technology, the underlying scams haven’t changed – they’re just wearing better disguises. “AI can be extremely convincing, but it’s the ‘ask’ and actions behind it that should really tell someone it’s a scam,” Alex says. “It’s still the same thing at the end of the day.”

This includes things like:

• Requests for private information like your banking or account details, passwords or one-time passwords (OTPs)
• The use of urgency, secrecy or intimidation 
• Offers that are ‘too good to be true’
• Unsecured, unverified or unusual payment methods/websites
• Unsolicited contact
• Demands for upfront payment

Banks do have tools and measures in place to try and stop fraud, but it does slip through, so it’s important for consumers to be informed of what to look out for. “It’s much easier to tell someone to not make a payment than it is to recover a lost one,” Alex says.

In fact, most of the time, once money leaves your bank account it’s gone for good. “It’s organised crime,” Alex says. “Scammers are professionals at this. They have everything ready to get the money out instantly and make it irrecoverable as soon as it leaves your account.”

So, how can you keep yourself safe in a world where scams look more convincing than ever on the surface? Alex stresses the importance of educating yourself and staying vigilant:

• Be extremely skeptical online and do your due diligence, especially when money is involved. “Best not to treat the internet by default as a safe place where everything is genuine,” Alex says.
• Watch for red flags: If it's too good to be true, a celebrity endorsement, or an ‘AI-powered’ investment opportunity, it’s almost certainly fake.
• Verify someone is who they say they are, either in real life or via video call.
• Ask for help: Get a second opinion from someone who is digitally savvy, or call your bank if you’re unsure about something.
• Double check everything: “The internet can be extremely poorly regulated – a bit of a wild west,” Alex says. “The internet is less trustworthy than ever, and there are so many bad actors at play. You have to have your wits about you.”

Learn more about staying safe online at Bank Australia’s scams, security and fraud page.