Protecting Your Investment Accounts From Gen AI Fraud
Generative AI has made it easier for fraudsters to impersonate consumers and commit fraud.
Investment fraud involving the use of artificial intelligence (AI) is on the rise. Increasingly, fraudsters are using generative AI (Gen AI) tools to gain access to financial accounts and create new accounts in the names of unsuspecting investors.
Gen AI is a type of AI that can create new content based on a user's prompts. For example, tools using Gen AI technology can write essays and computer code; generate realistic images, audio and video; drive chatbots that interact with humans; and perform more functions than database searches that simply return results in response to word or information queries. Gen AI is making it easier for bad actors to fraudulently open new accounts using investors' identities and to improperly gain access to investors' accounts.
Fraudsters are using Gen AI's capabilities to exploit traditional identification (ID) verification processes and commit new account fraud and account takeovers in multiple ways, including the following:
