AI-fuelled bank scams rise, impersonating officials with ease

A new report reveals that artificial intelligence (AI) is now being used by criminals to make bank scams increasingly difficult to identify.

While AI has transformed the working landscape for many industries, it has simultaneously provided tools for fraudsters to enhance their deceptive tactics, particularly in financial scams targeting innocent victims. Criminals are reportedly deploying deepfake technology to impersonate bank officials, deceiving individuals into believing they are interacting with legitimate representatives of their financial institutions.

These sophisticated scams include phone calls claiming to be from a victim's bank, using details that appear authentic to convince individuals to transfer funds to what is portrayed as a 'safe' account. The spate of fraud cases has been further professionalised, with fraudsters establishing call centres aimed at deceiving British citizens round the clock.

Matthew Yates, Vice President of Engineering at MaxContact, has highlighted several prevalent types of phone scams that consumers should be vigilant about. "Impersonation scams often involve an unexpected call from a scammer claiming to be from your bank's fraud department, urging you to transfer money to a 'safe' account, only to vanish with your money," said Yates. "It's likely scammers will be impersonating the police, utility providers or government departments during these calls."

Yates also warned about debt collector scams, where individuals masquerade as legitimate debt collectors, pressuring victims into paying fictional debts. "They use threats and aggressive tactics," he noted. Scams impersonating HM Revenue and Customs (HMRC) have also been on the rise, with fraudsters accusing targets of tax underpayment.

"HMRC scams may involve scammers calling to accuse you of underpaying your tax," Yates explained. "They may leave automated voicemails threatening legal action or send emails and text messages urging you to call a fraudulent number."

Investment scams are another tactic used by criminals, as Yates highlighted. "These scam calls typically involve someone calling unexpectedly with fake investment opportunities that promise high returns or safe, risk-free opportunities but are designed to steal your money or identity," he said.

Yates also described prize draw scams as another method used by fraudsters: "A phone call claiming that you've won a prize or the lottery, with the fraudster inventing a story to hide the fact you don't remember entering a competition," he said. "They typically ask for your personal or financial information to receive the prize or money." He cautioned against charity scams where fraudsters impersonate charitable organisations to solicit donations using emotional appeals.

To combat these scams, Yates suggests several measures that individuals can adopt to protect themselves. These include asking the caller for their name and employer, proof of their location, and the purpose of the call. "If you suspect you are being scammed over the phone, ask for more information about the caller and their employer. If they hesitate or refuse to answer, this could be a sign you are being scammed," he advised.

"If the caller immediately asks for personal information or money, this is a strong indication that it may be a scam, particularly if you haven't heard of the organisation before," Yates added.

Other recommendations include researching the business or organisation the caller claims to represent and asking for a reference number. Yates advises being sceptical of unknown callers, not disclosing personal information, and ending calls that raise suspicion. Reports of fraudulent calls can be directed to Action Fraud via their helpline or online platform.