Criminals are Using AI to Steal Your Money: Here’s How to Protect Yourself
In a recent incident, a small business owner, Mari Gomez, found herself out almost $2,000 after being scammed by criminals who sold her a non-existent insurance policy. Consumer adviser Clark Howard breaks down the warning signs Mari missed and provides essential tips to spot and avoid similar frauds.
The Scam Unfolds
Mari Gomez had just acquired a license for her cleaning business when she received a call offering a lucrative contract to clean 110 homes. However, to secure this contract, she was told she needed to purchase liability insurance. An agent named Nicole Diaz from Coastal Insurance contacted her, claiming to help her get the policy. Mari made a $1,750 down payment using her debit card at a Chase Bank, only to find out later that all communication had been cut off, and Nicole Diaz was not an employee of Coastal Insurance.
The Role of AI in Modern Scams
Special Agent Aaron Sears highlights that artificial intelligence has made it easier for criminals to execute such scams. AI can generate convincing paperwork and communication, making it difficult for victims to spot fraud. Since 2019, Americans have lost nearly $40 billion to internet fraud, with many scams originating overseas, complicating recovery efforts.
Protecting Yourself from AI-Driven Scams
Clark Howard advises taking several precautions to avoid falling victim to similar scams:
- Avoid Unknown Numbers: Do not answer calls from unknown numbers, even if the caller ID shows a legitimate company name. Scammers can spoof caller IDs to appear trustworthy.
- Verify Services: If someone offers a service for your business, check them out thoroughly. Get multiple quotes and conduct independent research to verify their legitimacy.
- Be Skeptical of Too-Good-To-Be-True Offers: If an offer seems too good to be true, it probably is. Avoid sending money or making payments without verifying the opportunity.
- Watch for “If-Then” Scenarios: Scammers often use an “if-then” tactic, promising something attractive if you first provide money or personal information. This is a red flag.
Conclusion
AI has enabled criminals to craft more sophisticated scams, making vigilance more critical than ever. By following these protective measures, small business owners and individual consumers can reduce the risk of falling victim to fraud and protect their finances and dreams from being shattered by scammers.
