AI adoption is increasing as more and more people and businesses get comfortable using artificial intelligence tools like ChatGPT and others. The bad news is, not everyone using it has good intentions.
Here’s how the jump in AI usage is impacting the business world — including credit unions.
TYPES OF AI-GENERATED FRAUD TARGETING BUSINESSES
FOR SURVEYED GLOBAL FRAUD AND RISK PROFESSIONALS AND U.S. ADULTS
© Callahan & Associates | CreditUnions.com
Fraudsters are harnessing artificial intelligence to direct phishing scams at a variety of business sectors. Strategies range from simple phishing emails to account takeover, payment fraud, bypassing know-your-customer systems, and more.
Strategic Insights
- Nearly two-thirds — a full 61% — of all businesses have been targeted by phishing efforts written with AI tools, according to the Q2 2024 Digital Trust Index from SIFT, an AI-powered platform that detects and prevents fraud. Additionally, nearly half — 49% — reported payment fraud executed with or aided by AI tools like ChatGPT.
- According to the report, AI’s “ability to generate flawless text, code, realistic audio, images, videos, and even entire websites makes it a powerful tool in the hands of malicious actors.”
- For credit unions, artificial intelligence has made it even harder to combat fraud. Nearly 40% of surveyed financial services companies already report fraud losses ranging from $500,000 to $1 million. Coupling that with this new technology from bad actors can put the pinch on the industry’s IT teams.
- It’s difficult for credit union members to combat fraud, too. According to the Digital Trust Index, 72% of surveyed consumers reported noticing an increase in spam and scams during the past year. Nearly as many, 69%, said scams have not only increased but also become more difficult to identify. For credit unions, it is essential to establish effective measures against fraud while at the same time reassuring members their credit union is taking the right precautions.
