It can be a tiring or daunting undertaking, but it’s critical to stay ahead of the curve when it comes to financial security since scammers can similarly change and evolve their tactics. In 2024, three financial scams that are particularly prominent are: AI voice cloning, grandparent scams, and romance scams. Each represents a significant threat and understanding these scams is not only crucial for safeguarding your financial and personal information, but also that of your colleagues, friends, and family.
1. AI Voice Cloning Scams
Understanding AI Voice Cloning
To me, AI voice cloning is the scariest trick that is currently threatening the public. AI voice cloning technology has been rapidly advancing in recent years, enabling the creation of incredibly accurate imitations of a person’s voice. With just a little data of someone’s voice, sophisticated algorithms can generate voice patterns and tones that are practically indistinguishable from the real thing. Although impressive, this technology poses a large threat as scammers learn how to strategically implement voice cloning into their latest scheme.
How Scammers Use AI Voice Cloning
- Impersonation of Loved Ones: One of the most alarming uses of AI voice cloning is the impersonation of loved ones. Disguised as a friend or family member, this technology may call you and tell you that they are in a dire situation, and they need your help. The help could involve asking for money, or other personal information such the social security number of the person the technology is impersonating. To make it more convincing, the technology can make the caller sound like they are crying or having other forms of emotional distress. Although one may think they could detect if it was phony, this technology is highly accurate and most perfectly healthy ears could not detect the scam by the sound alone.
- Corporate Fraud: In a business context, voice cloning can be used to impersonate high-ranking executives or key personnel. Imagine if your boss called and asked you to do something special for him. He may even mention something specific that would seem only he would know. It may be tempting to immediately help him/her out. However, this is just another devious strategy employed by scammers around the world to trick you and me. The more information that these scammers have, the more personalized these fraudulent attacks can be.
Protective Measures
- Verify Identity Through Multiple Channels: If the person on the other side of the call is demanding money or information immediately, that is a sign to take a step back as most of those situations are not that dire in real life. One would almost never need a money transfer or personal information immediately. When receiving suspiciously dire requests from someone claiming to be a loved one, always verify their identity through a separate communication channel. For example, if you receive a call from a loved one, follow up with a text or call from someone else’s phone. This will help establish if the call is fake or not.
- Implement Multi-Factor Authentication: Implementing multi-factor authentication (MFA) can add an extra layer of security. This way, even if a scammer was able to make a dangerous attempt, they would still need additional verification to complete transactions or access sensitive data. Although there are many third-party verification companies that provide security services, many businesses and individuals find Microsoft Authenticator to be a fast and effective tool.
- Educate Yourself and Others: It is important to stay informed about the latest advancements in voice technology and how they can be used for scams. In addition, take the time to help educate family members, especially those who may be less familiar with technology, about AI voice cloning scams and ways to prevent them from being taken advantage of.
2. Grandparent Scams
What Are Grandparent Scams?
Grandparent scams, also known as “grandchild-in-distress” scams, exploit the emotional connection between grandparents and their grandchildren. My grandpa once got a call from a scammer who told him that he currently was holding my siblings and me hostage and wouldn’t release me until my grandpa sent him a large sum of money. This scammer had access to me and my siblings’ names, making this threat extremely intimidating.
In addition to threats, scammers may take a different approach and pretend to be a grandchild or other family member in distress. These scammers will try to create a scenario that compels the grandparent to provide financial assistance. Scammers often use information gleaned from social media, public records, or even data breaches to create a believable story. They might claim that their grandchild has been in a car accident, arrested, or is otherwise in urgent need of money. Emotional manipulation is designed to provoke an immediate, unthinking response. The scammer will typically create a sense of urgency, pressuring the victim to act quickly and secretly. This might involve telling the grandparents that they must send money immediately to avoid further complications.
How to Protect Against Grandparent Scams
- Educate Family Members: Make sure that older relatives are aware of this scam and understand that they should not send money or provide personal information without verifying the situation through another source. Emphasize the importance of taking a moment to verify any urgent requests.
- Verify Claims: Encourage family members to independently verify any claims of distress. A quick phone call to other family members or a trusted contact can help confirm whether the request is legitimate. In the scenario with my grandpa, he hung up and called my dad right away, finding out we were all safe. That’s all it took to take the power away from the fraudster.
- Use Protective Measures: Set up alerts or monitor accounts for any suspicious activity. Financial institutions and law enforcement agencies often provide resources and guidance on protecting against scams. If you find yourself a frequent target for these scams, consider purchasing some software security products that will help keep you and your family members safe.
3. Romance Scams
Understanding Romance Scams
Romance scams involve con artists creating fake profiles on dating websites or social media platforms to establish romantic relationships with victims. These scammers use a variety of tactics to build emotional connections before manipulating the victim into sending money or sharing sensitive information. Statistically, romance scams are one of costliest tactics used by fraudsters today. According to a reporti from the Federal Trade Commission, almost 70,000 people last year reported losing money to romance scams, adding up to $1.3 billion in losses.
How Romance Scams Operate
Scammers invest time in building a relationship with their victims. They craft convincing profiles and stories, often using stolen photos and fabricated personal histories. They may claim to be from a distant location, which helps avoid face-to-face meetings and provides cover for their lies. Once a relationship is established, the scammer will invent various emergencies or financial crises that require money. These can range from medical emergencies and legal troubles to urgent travel needs. The goal is to create a sense of urgency and manipulate the victim into sending money. If you are interested in learning more about how these scams work, you can view a Netflix documentary titled, “The Tinder Swindler.”ii
Protective Measures Against Romance Scams
- Be Cautious with Online Interactions: Exercise caution when engaging in online relationships. Be wary of people who seem too eager to establish a relationship quickly. If individuals are reluctant to meet in person or provide verifiable information, there is a good chance it may be a scam. Other red flags include requests for money, reluctance to share personal details, and a sense of urgency or emotional manipulation. If something doesn’t feel right, trust your gut and proceed with caution.
- Verify and Report: Conduct background checks on online partners if possible. Use reverse image searches to check if their photos are being used elsewhere on the internet. If you suspect you’re being scammed, report the situation to the relevant platform, as well as to authorities such as the Federal Trade Commission (FTC) or local law enforcement.
Conclusion
As we continue through 2024, staying informed about financial scams is more important than ever. AI voice cloning, grandparent scams, and romance scams are three prominent threats that leverage technology and emotional manipulation to exploit victims. By understanding these scams and implementing the protective measures that I discussed, you can significantly reduce the risk of becoming a victim.
Beyond everything else, education is the most powerful tool in combating fraud. Take the time to share information about these scams with friends and family, particularly those who may be more vulnerable, such as the elderly or those who are not as familiar with technology.
With the rapid development of technology, it is inevitable that scams will continue to become more elaborate and increasingly hard to detect. It is important to remember that staying informed and vigilant is your best defense against scammers who are continually developing new fraudulent techniques and strategies. Don’t hesitate to seek help from authorities if you suspect you’re being targeted, and always prioritize verifying the authenticity of any suspicious requests or communications.
i Federal Trade Commission, “Romance Scammers’ Favorite Lies Exposed,” February 14, 2023, https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/02/romance-scammers-favorite-lies-exposed.
ii The Tinder Swindler, directed by Felicity Morris (Netflix, 2022).
Disclosures: The information provided in this article is intended for educational and informational purposes only. It does not constitute financial, legal, or investment advice, and should not be construed as such. Readers are encouraged to consult with their financial advisors, legal professionals, or other qualified experts before making any decisions based on the information presented. The statistics and examples provided in this article are based on publicly available data and sources believed to be reliable as of the date of publication. However, no representation or warranty, express or implied, is made as to the accuracy, completeness, or timeliness of the information. The scenarios discussed are hypothetical and are meant to illustrate the types of scams that individuals might encounter. Mention of specific products or services, such as Microsoft Authenticator, is for illustrative purposes only and does not constitute an endorsement or recommendation by the author or any affiliated parties. There are many third-party providers of security and authentication tools, and readers are encouraged to evaluate all available options based on their individual needs. The author, publisher, and affiliated parties are not liable for any losses or damages, including, but not limited to, direct, indirect, incidental, punitive, or consequential damages, arising from the use or reliance on the information provided in this article. While this article discusses protective measures against scams, there is no guarantee that following these measures will prevent fraud or financial loss. Scammers continually develop new methods and tactics, and it is impossible to anticipate all potential threats. Vigilance and ongoing education are recommended to help reduce the risk of falling victim to scams. Certain statements in this article may contain “forward-looking” information, including references to potential future threats or scams. These statements are based on current expectations and are subject to risks, uncertainties, and changes in circumstances. Actual results or outcomes may differ materially from those discussed.
