How to Prevent AI Scams in Your Business

AI and generative AI have been making waves in recent years, transforming everything from how businesses operate to how we communicate. 

Tools like ChatGPT and DALL·E have demonstrated the incredible potential of AI, with the global AI market projected to grow to over $184 billion by 2030. 

But with great innovation comes great risk.

In the wrong hands, AI can become a powerful tool for deception. Scammers are finding creative ways to use AI for fraud, impersonation, and phishing, making these threats harder to detect and stop. 

Understanding AI scams—and how to protect yourself against them—is now more important than ever.

What Are AI Scams?

AI scams are fraudulent schemes that use artificial intelligence to deceive businesses or individuals. 

Scammers might use deepfake videos to impersonate someone important, craft phishing emails that sound highly convincing, or sell fake AI tools designed to steal data or money. These scams work because they leverage the sophistication of AI to appear legitimate and trustworthy.

AI has made it easier for scammers to create targeted, realistic attacks at scale. Understanding how these scams operate is key to protecting your business and staying a step ahead of bad actors.

Types of AI Scams On the Rise

AI technology has opened new avenues for scammers to exploit. Here are some prevalent AI-driven scams businesses should be aware of:

1. AI Voice Scams and Video Scams

Scammers use AI to create realistic audio or video deepfakes, impersonating executives or public figures to deceive victims. 

For instance, in 2019, fraudsters used an AI voice scam to mimic a CEO's voice, convincing a team member to transfer €220,000 to a fake account. 

In another instance, scammers used AI images, voice, and video to impersonate actor Tom Hanks to sell products over social media. These AI applications are only becoming more frequent and harder to detect. 

2. AI-Generated Phishing Emails

AI enables the crafting of convincing phishing emails that mimic the tone and style of legitimate communications. 

These emails often bypass traditional spam filters, increasing the likelihood of deceiving recipients into sharing sensitive information. 

According to a study published by the Harvard Business Review, 60% of participants fell victim to AI-automated phishing. 

Those results are similar to non-AI-generated phishing emails, meaning with AI, it's easier and just as effective for scammers to use AI generation for phishing.

Need to equip yourself with AI scam protection in emails? Learn more in our email security cheat sheet.

3. Artificial Intelligence Phone Scams

With minimal voice samples, AI can clone someone's voice to make fraudulent calls, often posing as a trusted individual in distress to ask for money. 

A 2023 survey found that one in ten people reported being targeted by AI voice cloning scams, with 77% of these targets losing money in the process. 

4. AI-Driven Investment Scams

Scammers create fake AI-generated content, such as images or videos of celebrities endorsing fraudulent investment schemes, to lure victims.

Investment-related AI scams are the most effective, leading to over $67 million in losses in 2023. 

5. AI-Powered Fake Reviews and Content

AI tools generate fake reviews and content to deceive consumers about the quality of products or services, leading to misguided purchasing decisions. 

Since November of 2022, there has been a 400% increase in AI-generated product reviews on Amazon, and extreme reviews are 1.3x more likely to be AI-generated.

Staying informed about these evolving AI-driven scams is crucial for businesses to implement effective safeguards and protect against potential threats.

AI Scam Protection Strategies

AI scams are getting smarter, but there are practical steps you can take to safeguard your business. Here’s how to stay ahead of bad actors:

Educate Your Team

Make sure everyone in your company knows how AI scams work and what to look for. 

Share examples of phishing emails, deepfake impersonations, or voice cloning scams so employees can spot red flags. Regular training can make your team the first line of defense.

Educate your hybrid or remote team on the best practices for hybrid and remote work with our highly effective remote work security guide.

Verify Requests for Sensitive Information

If you get an email or call requesting money transfers, login details, or sensitive data, always verify it through a separate, trusted channel. A quick call to confirm a request could save you from a costly mistake. 

You can also establish a “safe word” with the people controlling the cash flow at your company. If they know the safe word, it means you can trust them with your sensitive information.

Use Multi-Factor Authentication (MFA)

MFA adds an extra layer of security by requiring a second form of verification beyond just a password. Even if scammers manage to steal login credentials, MFA can block unauthorized access.

Invest in Security Tools

Deploy tools that detect AI-generated content, block phishing attempts, and monitor unusual activity on your network. 

Tools like endpoint detection and response (EDR) systems can help identify and stop scams before they escalate.

Protect Your Data

Limit access to sensitive information within your company and make sure it’s encrypted wherever possible. Regularly update software and security patches to close off vulnerabilities scammers might exploit.

Verify AI Vendors

If you're considering purchasing AI tools or software, vet the vendor carefully. Look for verified reviews, conduct due diligence, and make sure the provider meets your security standards.

Monitor Emerging Scams

AI scams evolve quickly. Keep tabs on the latest trends in fraud, whether through industry news or by working with security experts, so you can adapt your defenses.

Foster a "Report and Escalate" Culture

Encourage employees to report anything suspicious, no matter how minor it seems. Fast reporting can prevent a small issue from turning into a larger breach.

The Impact of AI Scams

AI scams can disrupt every part of a business. Here are some of the most common ways these scams leave a mark:

• Financial Losses: This is the most immediate consequence. Whether it’s money transferred to scammers, stolen assets, or the cost of recovering from a breach, the financial hit of an AI scam can be significant. For small businesses, even a single scam could jeopardize their survival.
• Reputational Damage: If your business falls victim to AI scams, it can shake customer trust. Imagine a deepfake email scam affecting your clients or a data breach exposing sensitive information. It’s hard to rebuild confidence once trust is broken.
• Operational Disruption: AI scams often target critical systems, leading to downtime and chaos. A ransomware attack, for example, could shut down your operations for days or weeks while you scramble to respond.
• Data Breaches: Scammers often target sensitive customer, employee, or company data. Once compromised, this data can be sold or exploited, leading to long-term damage and even legal repercussions for failing to protect it adequately.
• Legal and Compliance Issues: If a scam exposes sensitive data or disrupts services, your business could face legal consequences or fines, especially in industries with strict regulations like healthcare or finance.

Protect Your Business From AI Scams

AI scams are evolving fast, and the risks they pose—financial loss, reputational damage, and operational chaos—can be devastating for any business. Staying vigilant is essential, but it’s not something you have to tackle alone.

That’s where Ripple comes in. 

With our managed IT services, you get the tools and support your business needs to stay secure. From WorkSafe security tools that block potential threats to IT user support that guarantees your team can quickly respond to suspicious activity, we’ve got you covered. Our strategic IT management helps you anticipate risks and empowers your team to recognize and prevent AI scams proactively.

If you’re looking to keep your business safe from AI scams, chat with Melissa, our Director of Strategy. She’ll be there to answer any pressing IT questions you have.