Not only are threat actors always modifying tactics making it imperative for security teams to maintain situational awareness and adapt training methods, but as of late, cybercriminals have been observed delivering more convincing scams by leveraging generative AI. As this does not come as a huge surprise per se, it is a threat worthy of our attention as scammers have been seen fooling even the savviest internet users and not just the elderly. These scams don’t only include the generic phishing email either, but also include pig butchering scams, inheritance scams, humanitarian relief scams, and triangulation fraud.

Pig Butchering
A type of fraud where scammers gain victims’ trust and manipulate them into making fraudulent investments. VISA’s Spring 2024 Threats Report indicates that pig butchering scams appear on the rise as 10 percent of surveyed adults have reported being targeted by such scams. AI is making this type of scam more available and more convincing as free AI tools help these criminals overcome the language barriers which are almost always present.

Inheritance Scams
AI has made inheritance scams far more common and effective. According to VISA, 15 percent of U.S. adults have reported being targeted in these scams. The tools offered by generative AI allow inheritance scammers to create personalized communications, giving attackers the capability to more quickly scan publicly available information to generate tailored messages. The assistance of AI results in far more convincing letters, personas, and emails to better trick and take advantage of victims.

Humanitarian Relief Scams
In this scam, attackers take advantage of legitimate humanitarian crises to collect donations which are then kept and never sent to the intended recipients. The use of generative AI has also further spread the use and effectiveness of these scams by allowing attackers to overcome language barriers, create false accounts and communications at scale, and engage in convincing conversations with their victims.

Triangulation Fraud
Also known as drop shipping scams, the Financial Services ISAC (FS-ISAC) estimates that financial losses to merchants from triangulation fraud range from $660 million to $1 billion for one month in 2022 alone. These scams involve the creation of a fake website or storefront to scam victims into buying an item. The attacker then purchases the same item from a legitimate online store like Amazon, ships it to the victim’s delivery address, and then pockets the difference in price. Generative AI can be incorporated into multiple variations, like fake store creation, product image generation, automated order placement, and communications with victims.   

While threat actors continue to improve their tactics, be sure to stay up-to-date with the latest methods and tactics, and implement current effective security measures. WaterISAC shared methods for fending off modern spam tactics last month. For more information, visit Tripwire or Check Point.