How Financial Institutions Can Combat AI-Deepfake Fraud
Nov 5, 2024
What is Elder Fraud?
Elder fraud is a type of financial exploitation that targets older adults through deceptive financial schemes. These scams often exploit seniors’ vulnerabilities, such as trust in others, social isolation, or limited knowledge of modern technology. Scammers use various tactics, including impersonation, fake tech support, phishing, and romance scams, to manipulate victims into sharing personal information and sending money. The impacts of elder fraud can be severe, leading to financial loss, emotional distress, and reduced trust in others. The FBI estimates losses of $3.4 billion in 2023 thanks to elder fraud scams, with many cases going unreported due to embarrassment or lack of awareness.
Common Types of Elder Fraud
Family Impersonation Scams: Family impersonation scams occur when a fraudster pretends to be a family member in urgent need of help, often requesting money under false pretenses. Voice cloning technology now allows fraudsters to mimic the voice of a loved one with impressive accuracy, making the scam even more persuasive.
Medicare and Health Insurance Scams: Medicare and health insurance scams involve fraudsters posing as representatives of Medicare, health insurance companies, or healthcare providers. These scams are a serious issue that disproportionately affect older adults. The goal is to steal personal information, commit identity theft, or fraudulently bill for services that were never provided.
Romance Scams: Romance scams are another prevalent type of fraud that can have devastating emotional and financial impacts, especially on older adults or those who may be more isolated or seeking companionship. These scams leverage emotional manipulation, often building trust over time to exploit victims.
Tech Support Scams: Tech support scams involve scammers contacting victims or tricking them into reaching out by claiming there is an issue with their computer or device. These scams often target older adults, who may be less familiar with current technology, but anyone can fall victim to these scams.
Real-World Examples: Family Scams Using Voice Cloning
In recent years, family impersonation scams have leveraged AI to create highly realistic voice clones. These scams are particularly dangerous because they create an emotional urgency that makes people act quickly, often without verifying the situation.
Case 1:
A similar incident took place in California, in which scammers used AI voice technology to defraud an elderly man out of $25,000. The fraudsters called the man, using an AI-generated voice that mimicked his son's, claiming the son had been in a serious car accident and urgently needed money for bail. The voice was so convincing that the victim was certain it was his son, prompting him to withdraw the money and hand it over to the scammers.
Case 2:
Liza Likins, who lost her husband to cancer 23 years ago, decided to try dating again and connected with a man on Facebook Dating. He claimed to live in Australia, and they developed an online relationship. Over time, he began asking for money, convincing her to sell her house to raise funds after alleging he had been jailed and needed bail. Likins later discovered that the entire relationship was a scam, which cost her over $1 million.
The Role of AI in Modern Scams
Voice cloning technology has brought fraud to a new level, using only short voice clips from social media or voicemail recordings to create realistic imitations of loved ones. For seniors unfamiliar with this technology, the distress of hearing a loved one in apparent trouble can easily override skepticism. As AI technology becomes more accessible, it’s critical to spread awareness of these advanced tactics.
Protecting Yourself and Loved Ones from Elder Fraud
Verify the Call with a Follow-Up Question: Ask questions your loved ones or friends would only know the answer to. Scammers may use convincing voices but might stumble over personal details.
Reach Out Directly: Contact your family member at their known number to confirm their status before taking any action that could lead to financial loss.
Beware of Urgent Financial Requests: High-pressure, urgent demands are common in scams. Take time to consider the request and consult with someone you trust.
Inform Financial Institutions: Banks often have protocols to protect clients from scams. Speak to your bank if you’re unsure about a transaction, as some employees, like the Saskatchewan bank manager, may recognize fraud patterns.
Limit Personal Information on Social Media: Be mindful of what you share publicly. Details about family members, locations, or routines can give scammers the information they need to make their calls more convincing.
Reporting Elder Fraud
If you or a loved one suspects elder fraud, it’s crucial to report it immediately. In the United States, you can contact the Federal Trade Commission, the FBI’s Elder Fraud Hotline, or local law enforcement. Financial institutions are also key partners in reporting suspicious activity, and the Financial Crimes Enforcement Network (FinCEN) provides guidance to help banks detect and prevent elder financial exploitation.
Have you Herd?
Elder fraud is evolving, with AI enabling scammers to create highly believable scenarios that target our emotional responses. Staying up to date with these tactics and taking steps to verify unexpected financial requests can help us better protect ourselves and our loved ones. Remember, urgent demands for money—especially those involving supposed family members in distress—warrant a second look. Protect your family by spreading awareness and keeping conversations about elder fraud open.
AI-driven voice fraud is a sophisticated and evolving threat, but organizations can stay one step ahead with the right defenses. Herd Security’s advanced voice detection is designed to combat these types of social engineering attacks by identifying suspicious behavior patterns and voice anomalies. Our solutions empower security teams to proactively mitigate the risks, continuously adapt to new threats, and strengthen the human element of cybersecurity.
Don’t let AI-powered attacks catch you off guard. Stay vigilant and protect your organization with Herd Security. Be a member of our pilot program today.
What is Elder Fraud?
Elder fraud is a type of financial exploitation that targets older adults through deceptive financial schemes. These scams often exploit seniors’ vulnerabilities, such as trust in others, social isolation, or limited knowledge of modern technology. Scammers use various tactics, including impersonation, fake tech support, phishing, and romance scams, to manipulate victims into sharing personal information and sending money. The impacts of elder fraud can be severe, leading to financial loss, emotional distress, and reduced trust in others. The FBI estimates losses of $3.4 billion in 2023 thanks to elder fraud scams, with many cases going unreported due to embarrassment or lack of awareness.
Common Types of Elder Fraud
Family Impersonation Scams: Family impersonation scams occur when a fraudster pretends to be a family member in urgent need of help, often requesting money under false pretenses. Voice cloning technology now allows fraudsters to mimic the voice of a loved one with impressive accuracy, making the scam even more persuasive.
Medicare and Health Insurance Scams: Medicare and health insurance scams involve fraudsters posing as representatives of Medicare, health insurance companies, or healthcare providers. These scams are a serious issue that disproportionately affect older adults. The goal is to steal personal information, commit identity theft, or fraudulently bill for services that were never provided.
Romance Scams: Romance scams are another prevalent type of fraud that can have devastating emotional and financial impacts, especially on older adults or those who may be more isolated or seeking companionship. These scams leverage emotional manipulation, often building trust over time to exploit victims.
Tech Support Scams: Tech support scams involve scammers contacting victims or tricking them into reaching out by claiming there is an issue with their computer or device. These scams often target older adults, who may be less familiar with current technology, but anyone can fall victim to these scams.
Real-World Examples: Family Scams Using Voice Cloning
In recent years, family impersonation scams have leveraged AI to create highly realistic voice clones. These scams are particularly dangerous because they create an emotional urgency that makes people act quickly, often without verifying the situation.
Case 1:
A similar incident took place in California, in which scammers used AI voice technology to defraud an elderly man out of $25,000. The fraudsters called the man, using an AI-generated voice that mimicked his son's, claiming the son had been in a serious car accident and urgently needed money for bail. The voice was so convincing that the victim was certain it was his son, prompting him to withdraw the money and hand it over to the scammers.
Case 2:
Liza Likins, who lost her husband to cancer 23 years ago, decided to try dating again and connected with a man on Facebook Dating. He claimed to live in Australia, and they developed an online relationship. Over time, he began asking for money, convincing her to sell her house to raise funds after alleging he had been jailed and needed bail. Likins later discovered that the entire relationship was a scam, which cost her over $1 million.
The Role of AI in Modern Scams
Voice cloning technology has brought fraud to a new level, using only short voice clips from social media or voicemail recordings to create realistic imitations of loved ones. For seniors unfamiliar with this technology, the distress of hearing a loved one in apparent trouble can easily override skepticism. As AI technology becomes more accessible, it’s critical to spread awareness of these advanced tactics.
Protecting Yourself and Loved Ones from Elder Fraud
Verify the Call with a Follow-Up Question: Ask questions your loved ones or friends would only know the answer to. Scammers may use convincing voices but might stumble over personal details.
Reach Out Directly: Contact your family member at their known number to confirm their status before taking any action that could lead to financial loss.
Beware of Urgent Financial Requests: High-pressure, urgent demands are common in scams. Take time to consider the request and consult with someone you trust.
Inform Financial Institutions: Banks often have protocols to protect clients from scams. Speak to your bank if you’re unsure about a transaction, as some employees, like the Saskatchewan bank manager, may recognize fraud patterns.
Limit Personal Information on Social Media: Be mindful of what you share publicly. Details about family members, locations, or routines can give scammers the information they need to make their calls more convincing.
Reporting Elder Fraud
If you or a loved one suspects elder fraud, it’s crucial to report it immediately. In the United States, you can contact the Federal Trade Commission, the FBI’s Elder Fraud Hotline, or local law enforcement. Financial institutions are also key partners in reporting suspicious activity, and the Financial Crimes Enforcement Network (FinCEN) provides guidance to help banks detect and prevent elder financial exploitation.
Have you Herd?
Elder fraud is evolving, with AI enabling scammers to create highly believable scenarios that target our emotional responses. Staying up to date with these tactics and taking steps to verify unexpected financial requests can help us better protect ourselves and our loved ones. Remember, urgent demands for money—especially those involving supposed family members in distress—warrant a second look. Protect your family by spreading awareness and keeping conversations about elder fraud open.
AI-driven voice fraud is a sophisticated and evolving threat, but organizations can stay one step ahead with the right defenses. Herd Security’s advanced voice detection is designed to combat these types of social engineering attacks by identifying suspicious behavior patterns and voice anomalies. Our solutions empower security teams to proactively mitigate the risks, continuously adapt to new threats, and strengthen the human element of cybersecurity.
Don’t let AI-powered attacks catch you off guard. Stay vigilant and protect your organization with Herd Security. Be a member of our pilot program today.
