AI Fraud: A Growing Threat and How AltFunds Global is Combating It

Jul 16, 2024

Artificial intelligence (AI) is revolutionizing many aspects of our lives, but it also presents significant risks, particularly in cybersecurity. According to Jeff Shiner, CEO of 1Password, AI makes scams and cyberattacks more personalized and more challenging to detect. During his appearance at the Collision tech conference in Toronto, Shiner warned about the escalating threat posed by AI-driven cyberattacks.

The Rise of AI-Driven Cybercrime

AI allows scammers to craft highly personalized messages that trick even the most cautious individuals. Shiner highlighted that these attacks are not typical spam emails but sophisticated scams that can mimic real people and situations. For instance, in Hong Kong, fraudsters used deep fake technology to impersonate a finance worker’s employer, resulting in a $25 million loss.

Statistics Canada reported a surge in police-reported cybercrimes, reaching 74,073 incidents in 2022, up from 71,727 in 2021 and 33,893 in 2018. These numbers likely underrepresent the actual scale of cybercrime due to underreporting driven by stigma and embarrassment.

Traditional Threats Enhanced by AI

While new AI-driven threats emerge, traditional cyberattacks like identity theft, hacking, and phishing are becoming more sophisticated. Shiner pointed out that these threats are now more intelligent and can be executed on a larger scale. Companies must move beyond periodic safety reminders and provide employees with robust tools to effectively identify and respond to these threats.

The Risk of AI Tools

AI tools used within companies can also pose risks. Shiner cautioned against the careless use of AI chatbots, which may utilize input data to train their models, potentially exposing sensitive company information.

AltFunds Global’s Approach to Combating AI Fraud

AltFunds Global recognizes the growing threat of AI-driven cybercrime and is committed to proactive measures to safeguard our clients. We encourage potential clients to visit our offices in Toronto or Auckland or meet us at offshore events to ensure transparency and build trust.

Meeting Face-to-Face

In an era when digital interactions are fraught with risk, we believe in the power of face-to-face meetings. By inviting clients to meet our management team in person, we provide an increasingly rare level of security and assurance. These interactions help us establish strong, personal relationships with our clients, making it harder for fraudsters to impersonate our team.

Offshore Events

Our offshore events offer another layer of security. By participating in these events, clients can engage directly with our team and other industry experts, gaining insights into the latest security measures and best practices in combating AI fraud.

Conclusion

As AI continues to evolve, so too does the sophistication of cyberattacks. Companies must stay vigilant and adopt comprehensive security measures to protect themselves and their clients. At AltFunds Global, we are dedicated to fighting AI-driven fraud through personal interactions and robust security practices. By encouraging clients to meet with us in person, we build trust and provide a secure environment that mitigates the risks posed by advanced cyber threats.