July 24, 2024

The findings from Sift’s Q2 2024 Digital Trust Index revealed a disturbing trend – about 76% of businesses are now dealing with AI-powered fraud on a regular basis. This report was released by Sift, a fraud detection service based out of the US.

Following the reports, almost two-thirds of fraud and risk professionals express belief that their organisation is a primary target of AI fraud. Over half of these insist that such fraud occurs either daily or weekly. Consequently, the widespread use of AI tools such as openly available chatbots is empowering cybercriminals to plan and execute fraud attacks against both businesses and individuals. This grim reality is demonstrated by the dramatic 22% rise in blocked user-generated scam content seen on the Sift Data Network from Q1 2023 to Q1 2024.

Moreover, conventional scam identifiers such as typos and faulty syntax are becoming less prevalent as fraudsters utilize advanced AI tools like ChatGPT to craft deceivingly realistic written content. Hallmarks of fraud, including phishing mails, picture and video manipulation, and voice cloning, are deployed to evade traditional fraud detection methods, posing significant financial risks and potential reputational damage to businesses of all sizes.

Sift’s Report: Additional Insights

The report notes that criminals are increasingly using AI to enhance their fraudulent activities, hence businesses must likewise leverage AI to counteract these threats. Sift’s data shows 73% of consumers trust their ability to identify AI-crafted scams. However, almost one-third of consumers reported that they had been targeted with AI-based scams and one in five fell victim to such scams.

The report also highlights that 84% of Millennials, 81% of Generation Z, 70% of Generation X, and 53% of Baby Boomers are confident in spotting an AI scam. Surprisingly, 21% consumers were successfully phished and 69% of them agreed that it was becoming tougher to sniff out scams.

In preparing their report, Sift surveyed 123 global fraud and risk professionals online. Researchscape International, on behalf of Sift, also polled 1,066 US adults using the same method in May 2024.

Frequently Asked Questions:

1. What proportion of businesses confront AI-enabled fraud?

According to Sift’s Q2 2024 Digital Trust Index, around 76% of businesses are dealing with AI-powered fraud consistently.

2. How the era of AI has influenced the methods used by fraudsters?

Fraudsters are now utilising AI tools, such as chatbots and ChatGPT, to create convincing content and efficiently evade traditional detection methods. They carry out their activities through phishing emails, manipulated photos and videos, and voice cloning.

3. How does the confidence in identifying AI scams vary across different generations?

Sift’s report has shown that 84% of Millennials, 81% of Generation Z, 70% of Generation X, and 53% of Baby Boomers expressed confidence in their ability to identify an AI-based scam. However, one-third of consumers reportedly have been targeted with such fraud, with one in five ultimately falling victim.