Each year, as shoppers eagerly search for the perfect holiday gifts, scammers devise cunning schemes to exploit the spirit of giving for their own nefarious gains. With the increase in online purchases and charitable donations this time of year, it’s important to stay vigilant against deceitful tactics designed to target our wallets and personal information.
“In 2023, fraud resulting from AI cost victims an estimated $12.3 billion.“
One of the fastest-growing tactics used by scammers is artificial intelligence (AI). From mimicking voices to crafting convincing emails, cybercriminals are increasingly turning to AI to make their schemes more believable and harder to detect. As this technology becomes more advanced, so do the risks, making it especially important to understand how these scams work and how to protect yourself.
Staying informed about these threats and knowing how to safeguard against them will help ensure the holiday season remains merry and bright.
What Does AI Fraud Look Like?
Financial scams fueled by AI are on the rise. In 2023, fraud resulting from AI cost victims an estimated $12.3 billion, an amount that experts expect to compound by more than a third every year.
AI bots rapidly scan the internet for personal information or vulnerabilities to launch phishing attempts against thousands of unsuspecting individuals. By analyzing public social media profiles, cybercriminals can highly customize scam messages to increase credibility and success rates. Using AI tools, scammers can then craft emails, texts, and even phone calls that seem like the real deal, imitating banks, government agencies, or even loved ones. This allows fraudsters to mimic relatives asking you to send money for an emergency or bank officers requesting payments for taxes or fees, all in an effort to persuade victims to share private data or transfer money.
How You Can Stay Safe
Staying alert to fraud doesn’t mean you have to lose the joy of the season, but it does mean you should approach holiday shopping with a bit of extra care. Here are easy ways you can protect yourself:
1. Be Skeptical of Unsolicited Contact.
If you get a call, email, or text from someone claiming to be your bank or a government agency, don’t respond right away. Instead, contact the organization or business directly using a trusted number or website. If someone claiming to be a friend or loved one reaches out with a financial request and something feels off in the voice or video message, trust your gut. Ask questions only the real person would know and confirm through another method.
2. Protect Your Personal Information.
Never share passwords, account numbers, or verification codes. Use strong, unique passwords and turn on multi-factor authentication (MFA) wherever you can.
3. Shop Local.
Richmond’s small businesses are the heart of our community. Supporting them not only boosts our local economy, but it also reduces your exposure to untrustworthy online retailers or fake websites.
4. Keep Your Tech Updated.
Make sure your phone, computer, and apps have the latest updates and antivirus protection.
5. Monitor Your Accounts.
Check your bank and credit card statements regularly. The sooner you spot something suspicious, the faster you can act.
6. Stay Informed.
Many banks share fraud prevention updates on their websites and/or social media accounts. Check your bank’s website to see if they have more specific tips to keep you safe while shopping this holiday season.
