Top 10 AI-fraud

AI fraud encompasses a range of deceptive practices leveraging artificial intelligence to impersonate individuals, generate fraudulent content, and automate large-scale attacks. Key types of AI fraud include:

1. Deepfake video scams: AI-generated videos that convincingly impersonate individuals, often used in CEO/CFO fraud or celebrity endorsement scams. For example, deepfakes of Elon Musk have been used in investment scams, and similar videos have featured celebrities like Gordon Ramsay and Taylor Swift promoting fake products. The number of deepfakes online is doubling every six months, with an estimated 8 million expected to be shared in 2025.
2. Voice cloning: AI is used to create synthetic voice messages that mimic real individuals, commonly employed in grandparent scams, extortion attempts, and impersonation of executives. Research indicates that 28% of UK adults believe they have been targeted by such scams, and 37% of organizations globally reported being targeted by deepfake voice attempts.
3. Synthetic identity fraud: Fraudsters combine real stolen data (e.g., Social Security numbers) with AI-generated personal details to create fake identities. These synthetic identities are used to open bank accounts, apply for loans, and commit financial fraud. This is the fastest-growing financial crime in the U.S., with projected losses reaching $23 billion by 2030.
4. Advanced financial malware: AI-powered malware can adapt and evolve in real time, evading traditional antivirus software. It can alter its behavior based on the security environment, making detection difficult. Reports suggest tools like OpenAI’s ChatGPT have been used to generate new strains of such malware.
5. AI-enhanced phishing: Large language models (LLMs) are used to craft highly convincing phishing emails and websites that mimic trusted brands. These messages lack common red flags like grammatical errors and can bypass spam filters. AI-powered phishing can achieve success rates comparable to human-crafted messages, with one study showing 60% of participants fell victim to AI-automated phishing.
6. Fraud-as-a-Service (FaaS): Criminals use ready-to-use AI toolkits sold on dark web forums or Telegram channels. These kits include tools like WormGPT, Agent Zero, FraudGPT, and DarkBard, which are designed for phishing, identity spoofing, and generating malicious content. Some tools even offer customer support and subscription models.
7. Automated vishing (voice phishing): Tools like ViKing, developed by researchers, demonstrate how AI can run entire phone scams without human intervention, using voice cloning and real-time conversation adaptation. In trials, it successfully deceived 52% of participants, rising to 77% among those unaware of the threat.
8. Document fraud: Services like OnlyFake allow fraudsters to generate realistic digital IDs, passports, and invoices for as little as $15, bypassing Know Your Customer (KYC) checks.
9. Business email compromise (BEC): AI tools are used to craft urgent, personalized payment requests that mimic corporate tone and context, often incorporating details from public sources like LinkedIn or financial filings to increase credibility.
10. Invoice swapping: Tools intercept legitimate invoice emails and replace payment details with fraudulent accounts before the payment is processed, often going unnoticed until the real vendor follows up.

These fraud methods are increasingly difficult to detect due to their scalability, personalization, and use of advanced AI, requiring proactive detection and public awareness.