The rise of AI: Fraud in the digital age

AI fraud

Contributed by Competition Bureau Canada

Artificial intelligence (AI) is an exciting tool and has revolutionized many aspects of our lives. But it has also given fraudsters opportunities to make their frauds even more convincing.

AI can be used to quickly produce texts, emails, and messages in the style and language of a specific person. It can be used to clone anyone's voice. And in just minutes, it can be used to make fake images, audio, or videos of real people – also known as “deepfakes”.

You may even have come across deepfakes without noticing it.

Back in 2020, British television channel, Channel 4, produced a fake video depicting the former United Kingdom Queen, Queen Elizabeth, delivering a Christmas message. In the impersonating video, the fake but realistic Queen is shown speaking about controversial topics and even performed a TikTok dance routine! Turns out this was a way for Channel 4 to warn the public about how AI can be used to create believable, seemingly real videos and audio to trick people.

In January 2024, a deepfake video of the American singer Taylor Swift giving away 3000 Le Creuset products was circulating online. The video contained a fake audio and video of the singer, and consumers were directed to the fraudster’s website where they were asked to pay a shipping fee for the fake product.

In February 2024, an employee of a multinational firm in Hong Kong was tricked into joining a video conference. All the other participants, including a CFO, were deepfake clones from past genuine online conferences. Thinking they were real colleagues, the employee transferred around Can$34.5 million to different bank accounts as instructed by the fraudsters.

Experts predict that as AI technology continues to advance, deepfakes will become more realistic.

Consumers and businesses must be vigilant. Sometimes it’s hard to tell what’s real and what’s been generated by AI. Keep in mind, however, knowledge is your best shield to protect yourself from AI-generated scams.

Keep in mind that fraudsters can use AI to:

  • Impersonate a well-known company or individual to promote fake products or services.

  • Generate a convincing fake investment opportunity.

  • Make chatbots spread fake reviews that sound and look like real people wrote them.

  • Use voice cloning for deceptive telemarketing.

Watch out for these red flags:

  • Realistic-looking videos of a public figure promoting an investment opportunity, or any other promotion they don’t normally do.

  • Unusual body or face movement in videos.

  • Strange phrasing or inconsistencies, irrelevant content.

  • Websites that mimic real companies.

  • Unexpected phone calls or messages, especially if the sender conveys a sense of urgency, fear, or panic.

To protect yourself:

  • Trust your instincts when something doesn't feel right.

  • If something seems fishy, check names and logos on websites for authenticity.

  • Stay informed about AI and frauds—research, read, and discuss with friends and family.

  • Report suspicious websites. If you believe you’ve come across misleading AI generated content, report it to your local consumer protection authority and www.econsumer.gov.