In recent years, Artificial Intelligence (AI) has made significant strides, transforming various aspects of our lives with exciting innovations and possibilities.

However, alongside these advancements, there are growing concerns about the darker side of AI, particularly its role in enabling sophisticated scams. As AI technology becomes more advanced, so do the tactics used by scammers to deceive and exploit individuals.

So we want to help shed some light on the prevalent AI scams, help you understand who is at risk and discuss measures to protect yourself from falling victim to AI scams.

There are a few main AI scams to be aware of:

  • Deepfakes are AI scams that are essentially fake media content that is highly believable. For example, a video clip of financial expert and broadcaster Martin Lewis was recently fabricated, aiming to convince viewers to part with their money.
  • AI software can clone voices and use them to make fraudulent phone calls. In a recent survey¹, 77% of those respondents who had been victims said they had lost money because of this kind of scam.
  • Images and videos can be created of people to pass through security and verification checks, thus gaining access to bank accounts.
  • ChatGPT enables phishing scams to seem more convincing by making the tone more human and filtering out any spelling or grammatical errors.

Who is at risk of AI scams?

Everyone risks falling victim to these AI scams, regardless of age. In fact, research² has found that 48% of adults between the ages of 25 and 34 have experienced financial fraud, while only 28% of those over 55 said the same.

What can we do about AI scams?

Andrew Bailey, Governor of the Bank of England, commented: “The time to act to safeguard our society from AI scams and AI-enabled fraud is now, and all organisations need to think carefully about how AI may create fraud risks for their business and customers. This will require ongoing vigilance, including monitoring and the sharing of insight and best practices between firms and across sectors.”

We understand that the threat of AI scams can feel overwhelming, especially when the capability of AI is constantly changing and developing. That’s why it’s important to question everything, equip yourself with knowledge so you’re not vulnerable and, if in doubt, get in touch for guidance.

Get in touch

Navigating the complex landscape of AI-driven scams can be daunting, but you don’t have to do it alone. As your trusted financial advisors, we’re here to help you safeguard your finances and provide peace of mind. If you have any questions or concerns about potential scams, or if you simply want to stay updated on the latest protective measures, don’t hesitate to reach out to us.

Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering pension planning advice, mortgage advice and more. Our clients often come from Eastbourne, Lewes, Seaford, Bexhill, Hastings, Crowborough and further afield.

Get in touch with our friendly team today – We’d be happy to help.

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¹McAfee, 2024
²GFT UK

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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

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