Fraudsters made £2.3 billon in 2023, as AI scams rise

Online scams are on the rise- targeting people for their money over things like holiday bookings, impersonations and lately, by using AI.

Erin Nicholson, global head of data protection and privacy at Thoughtworks said, “The amount of fraud committed in the UK more than doubled to £2.3 billion in 2023, marking the second-biggest year for scams in the last two decades.

“Ever since Big Tech, fintechs and other incumbents have shifted towards a more digital and data-driven approach to customer experience, the payments space has emerged as one of the most vulnerable to fraudsters.

“Analysis of this data shows not only a growth in fraud rates, but the amounts involved are getting bigger too. With rising access to AI-powered tools, the sad reality is that fraudsters are becoming increasingly advanced to stay one step ahead of those trying to catch them. Fraudsters can generate much more convincing content using generative AI, avoiding the previous tell-tale signs of bad spelling or grammar.”

How do I keep my money safe against AI scams?

• Be wary- criminals may use AI to create deepfakes of your loved one’s voice on a call or impersonating your colleagues on work communications, after a decade of rapid progression. be wary of any messages you get from numbers or emails which aren’t already stored in your contacts. If it appears to be someone you know, check the email address closely, as there may be an obvious slip up.

• Use banks who detect AI-powered fraud- When considering your financial provider, you could look out for banks championing AI-powered fraud detection systems.
• Stop, challenge and protect- Take a moment to stop and think if the request is genuine. It’s ok to reject, refuse or ignore any requests for your money or personal information, even if they appear as friends or relatives- only criminals will try and rush and panic you into sending money or personal details. Always make sure your login details are always secure and updated regularly and always use the secure payment options recommended by websites and use a credit card when making purchases over £100 and up to £30,000 as you get extra protection.
• Be careful what you share- Seemingly harmless information like your pet’s birthday, workplace or holiday plans can be gathered by fraudsters to put together a picture of your life to either be used in impersonation scams or to guess your passwords.
• Use digital wallets- Digital wallets such as Apple Pay or Google Pay are a good way of counteracting financial fraud as they’re encrypted so that they can’t be intercepted by hackers or compromised during transactions.

• Avoid phone payments- Scammers can clone voices quite easily. If someone calls you and you’re not sure it’s legitimate, don’t download any software onto your devices or give any personal details away. If they claim to be from your bank or another company, always get in touch with them using a phone/email displayed on their websites.

• Look out for- Account takeover fraud. To combat this, it’s vital to use unique and strong passwords for all your online accounts, and not to reuse passwords, especially on social media accounts, which are often susceptible to fraud.
• Don’t fill out forms- If you’re contacted and asked to fill in an online form to process a refund, contact the organisation using details specified on their website, or anything else separate from the form you’ve been sent and check the request is real.