Artificial intelligence blamed for fuelling increase in identity fraud
CRIMINALS are finding new ways to target consumers using social media and deepfake technology, says a fraud-prevention body.
Cifas said that over the past year members had reported being increasingly concerned about the potential growth in fraud generated by AI or artificial intelligence.
It is seeing an increase in AI-enabled identity fraud, such as sophisticated phishing scams, deepfake images, videos and audio.
In total, more than 374,000 fraud cases generally were reported to the Cifas National Fraud Database last year.
Cifas said that members prevented £1.8bn worth of fraud losses.
Identity theft remained the most dominant type of fraud, accounting for nearly two-thirds of incidents. More than 237,000 cases were recorded in 2023.
Criminals sharpened their tactics and continued to exploit cost-of-living pressures, Cifas found.
An increased use of AI and dataharvesting techniques to fraudulently open and abuse accounts, steal identities and take over customer accounts was also highlighted.
Personal bank accounts are a particular target for identity fraudsters, Cifas said.
Account takeover attempts may also use spoof voices to answer security questions.
Cifas has more than 700 members from industries including banking and finance, insurance, telecommunications, retail and the public sector.
Facility takeover fraud – when an account is taken over by a fraudster – is also an increasing issue. Cifas said the telecommunications sector was particularly affected.
This increase partly reflects a shift in fraudulent methods, with criminals increasingly targeting existing accounts to obtain new products or upgrades, it said.
Misuse of facility – when a product is obtained with the intent of misusing it – was also found to have increased.
There was a notable rise regarding loans, Cifas said.
Cifas said the overall misuse of facility data covered several industries, highlighting the impact of the cost-of-living pressures and people attempting to avoid payments or financially gain from stealing assets.
Stephen Dalton, director of intelligence for Cifas, said: “The impact of fraud and financial crime on people, companies and the public sector continues at epidemic levels.
“Ongoing economic uncertainty and cost-of-living pressures provide a rich source of opportunity for criminals to exploit people at their most vulnerable. These circumstances may also be the catalyst for some individuals to commit fraud and supplement their income during difficult times.”
A wider conversation on safety around frontier technologies such as artificial intelligence (AI) is urgently needed.
The rapid pace at which technology is developing can and does help people in all aspects of life. But it also creates opportunities for criminals to target people.
The warning from the fraud prevention body Cifas that criminals are finding new ways to target consumers using social media and deepfake technology should be a wake up call for all governments, not just Westminster.
Cifas is seeing an increase in AI-enabled identity fraud, such as sophisticated phishing scams, deep fake images, videos and audio.
The cost-of-living crisis is creating fertile ground for criminals to exploit vulnerable people through scams. It also means that some individuals are turning to fraud to supplement incomes. Therefore a greater emphasis is needed on spotting scams.
However, it is not just vulnerable people who could fall prey to criminals. Such is the convincing nature of certain scams, aided by the capabilities brought on by AI, that even those aware of risks can fall victim.
The ‘Stop! Think Fraud’ advertising campaign launched earlier this year is a welcome step from the Government but much more needs to be done.
There also needs to be international cooperation when it comes to ensuring the safety of citizens in the face of AI developments. Better education is needed to ensure people are not ensnared by fraudsters. Especially for vulnerable elderly people who may not know their way around the internet.