As artificial intelligence (AI) technology is moving faster than ever, experts are sounding the alarm. Today, bad actors have more access to these tools, allowing them to make a more convincing investment scam. Dr. Lennon Chang, an associate professor of cyber risk and policy at Deakin University, asserts that AI is shaping the future of scams and crime. His knowledge comes from the lived experiences of forward thinkers like Leon, a fraud and data detective. Recently, Leon became a target of scammers who used advanced AI-driven tricks to lure him in.
This dangerously unacceptable trend has raised red flags nationwide among economic experts and in communities. Dr Rakesh Gupta, an associate professor of accounting and finance at Charles Darwin University, calls on consumers to think twice when pitched an investment. Today, he’s focused on delivering the message that prospective scholarship students seek advice from duly registered financial advisors before committing to any financial obligation.
The Evolution of Scams
In her comments, Dr. Chang highlights how AI has dramatically changed the criminal landscape, including child exploitation and trafficking efforts. His focus is on how the technology allows anybody to develop websites and company policies. It further enables residents to create visualizations and develop grant-making budgets.
“Now using AI, everyone can be a developer to create a website, to write a [company] policy … to generate images … and even to create fake financial reports,” – Lennon Chang
Notable about this accessibility is that the tried-and-true methods of vetting investment opportunities are starting to fall short. Leon’s most disturbing experience highlights just how deep this problem runs. What was pitched to him as a harmless cold call turned out to be a branch of an advanced fee fraud scheme that Assent Advisory had no connection to. Scammers hooked him with links to glamorous websites that touted phony businesses. This created an environment where red flags were difficult for investors to see and impossible for them to ignore.
Dr. Chang reminds us that even the conversations we have on social media are not immune from being deceptively influenced by AI. He describes how likes and comments on social media generally lend legitimacy to any given page. These communication networks can be manufactured.
“We would usually suggest that people review the likes or comments [of a page] — what we call ‘the feedbacks’ — but that too can all be generated by AI now,” – Lennon Chang
A Call for Due Diligence
With the high level of advancement present in these scams, Dr. Gupta stresses that a simple due diligence just isn’t enough. He urges people looking to make investments to schedule meetings with registered financial advisors, who are equipped to offer real, legitimate advice. Down Under in Australia, the Australian Securities & Investments Commission (ASIC) issues licenses to investment firms. Conversely, in Singapore, micro-prudential regulation falls under the jurisdiction of the Monetary Authority of Singapore (MAS).
As Dr. Gupta explains in this video, it’s important to be skeptical when you are approached by so-called investment gurus. He’s convinced that staying skeptical is the best way for people to safeguard their wallets from con jobs that prey on unsuspecting people.
“So basic due diligence is probably not enough here,” – Leon
Here, he illustrates just how important regulatory frameworks are for protecting investors. He then further calms the public’s fears by explaining how licensed companies have to adhere to rigorous standards, putting another layer of safety on top of them.
The Need for Comprehensive Support
Dr. Chang echoes this sentiment and calls for a multifaceted approach to address the increased wave of scams. He’s convinced that true, scalable fact-checking will take collaboration among experts, including deep knowledge of finance, technology, and cyber security. This collaborative record is vital in helping to arm the public with the tools they need to recognize and steer clear of scams.
Similarly, there’s a increased appreciation for the mental health of scam victims. Dr. Chang urges for more resources and support systems to assist those who have fallen prey to these fraudulent activities. It doesn’t just financially devastate the victims who lose large sums to scams, the emotional impact is staggering. That’s why access to mental health services is so important.
A report released by the national Anti-Scam Centre just last week revealed Australians lost an eye-watering $945 million to investment scams. This jaw dropping sum was gone in a single year! This shocking number is a reminder that we need to do much more to educate the public and help prevent crashes before they happen.
