AI enabled scams to look out for
Quick insights
- Artificial intelligence (AI) can be used by scammers to target financial information, such as by cloning voices.
- Agentic AI can be used by bad actors to autonomously conduct complex AI scams.
- To help protect your credit card account, card issuers are now using advanced machine learning to monitor your account for suspicious activity in real time.
AI enabled scams are changing the way people shop, work and communicate. While AI tools offer benefits, they also provide new ways for scammers to target your personal information. Technology is evolving, and the tactics used by digital thieves are changing as well. Traditional scams often relied on obvious red flags like poor spelling, but AI enabled scams can be more convincing.
These new threats may include the use of recorded audio and video to create realistic impersonations of people you trust. Staying informed of these trends may help protect your cardmember status and your hard-earned money.
How AI-enabled scams can target financial information
Artificial intelligence allows scammers to automate and personalize their attacks at a scale. Let’s take a closer look:
- Voice cloning technology: These schemes use a short clip of audio from social media to recreate the voice of a family member. They can then use it to place a call that sounds exactly like a relative claiming they are in an emergency and need immediate funds.
- Deepfake video calls: Criminals use high-quality video manipulation to impersonate business leaders or government officials during live meetings. They aim to convince people to authorize a wire transfer or share login credentials without further verification.
- Autonomous scam agents: Agentic AI bots can carry out conversations over text or phone without human involvement. These bots are designed to build trust over time before asking for credit card security details.
- Machine to machine mayhem: Fraudsters are now using "bad bots" that mimic the behavior of "good bots" used for online shopping. This makes it harder for traditional security systems to distinguish between a legitimate automated purchase and a malicious one.
How your credit card security fights back
While the technology used by scammers is advancing, the tools used to protect your credit card accounts are also evolving. Card issuers are now using advanced machine learning to monitor your account for suspicious activity in real time.
Banks use a wide variety of AI engines to analyze millions of data points every time you swipe or tap. These systems may look at your location and merchant type to identify patterns that do not match your habits. If a transaction seems out of place, the system is designed to block it. This autonomous defense is designed to help your account remain secure.
Authentication methods to help protect your card
Modern credit cards offer a broad array of defense layers that are designed to make it difficult for a scammer to use your information even if they manage to steal it. Below are a few methods to consider:
- Passwordless passkey logins: Some apps now support passkeys that use your thumbprint or face scan instead of a traditional password. This method may be safer because there is no password for a scammer to phish or steal during a data breach.
- Virtual card numbers: Some issuers enable you to generate a temporary virtual credit card number for online shopping that is different from the number on your physical card. Because the merchant only sees this digital substitute, your primary account details remain hidden even if the website experiences a data compromise.
- Real-time behavioral biometrics: Some modern security systems can identify if the person typing on your account is actually you based on your typing cadence. If the rhythm of the keystrokes changes, the system can trigger an identity verification request.
- Instant mobile alerts: In some instances, your smartphone can receive a notification the moment a purchase is made on your account. You may also be able to also set up custom credit card alerts to monitor specific activities, such as transactions that exceed a certain dollar amount or international purchases. If a charge is made without your consent, you can notify your card issuer to freeze your account.
Spotting the red flags of a digital scam
Even with advanced technology, awareness may be one of the most effective tools against AI scams. Scammers often rely on creating a sense of urgency to make you act before you think clearly.
Some strategies include:
- If you receive a frantic call from a loved one asking for money, try hanging up and calling them back on their known number.
- Establishing a "family code word" that only your inner circle knows to verify identities during an emergency.
- Being wary of any request that asks you to pay via gift cards, wire transfers or cryptocurrency. Legitimate businesses and government agencies typically do not ask for payment through these untraceable methods.
Credit card protection services
Many cards now include identity theft monitoring as a benefit for every cardmember on the account to help catch threats early.
These services scan the dark web and credit bureau reports for your personal information. If your Social Security number or email address appears in a data breach, the card issuer can send an alert right away. It’s important to note that these alerts occur after a breach has already happened. However, they can help you respond quickly and take steps to protect your information.
The bottom line
Advances in technology are changing how fraud is carried out, but they’re also enhancing the ways credit card issuers help protect customers’ information. By enabling mobile alerts, using passkeys and verifying unusual requests, you can take simple steps to help safeguard your accounts.
