When discussing the importance of safeguarding their businesses from cyber scams, many business owners often dismiss the idea with the statement, "That won't happen to me." However, in today's environment, this sentiment has become quite unwise and is something you definitely don't want your clients, employees, or banker to hear.
Artificial intelligence, particularly generative AI tools, now enables scammers to create deep fakes with which they deceive their targets. Just recently, Clive Kabatznik, an investor based in Florida, contacted his local Bank of America representative to discuss a substantial money transfer he intended to make. Following this legitimate call, a scammer contacted the bank using an AI-generated deepfake voice that mimicked Clive, attempting to convince the banker to transfer the funds to a different account. Fortunately, the banker harbored enough suspicion to prevent any funds from being transferred, but not everyone is as fortunate.
According to a report titled "The Artificial Imposter" by the reputable cybersecurity firm McAfee, a staggering 77% of AI voice scams have successfully acquired money from their targets. Even more concerning is the fact that AI tools can clone a voice with just three seconds of audio. A CEO of a UK-based energy firm fell victim to a voice scam when he believed he was conversing with the CEO of the parent company in Germany. The voice on the other end instructed him to send $233,000 to a Hungarian supplier, and the imitation was so convincing, right down to the subtle German accent, that the CEO complied without hesitation. By the time they realized the ruse, the money had already been transferred to Mexico and dispersed to untraceable locations.
However, it's not only large corporations that are being targeted. Jennifer DeStefano, a mother of a 15-year-old daughter, shared her harrowing experience during a US Senate hearing. An AI scammer had used her daughter's voice to try to convince her that the girl had been kidnapped. Luckily, her daughter was safely asleep in her bed, allowing Jennifer to discern the scam. Many others are not as fortunate and fall victim to AI voices mimicking their grandchildren, children, and loved ones in urgent need of money.
The extent of this emerging threat is still not comprehensively documented, but the CEO of Pindrop, a security company that monitors audio traffic for numerous major US banks, reported an increase in its prevalence this year, as well as a rise in the sophistication of voice fraud attempts. Even another prominent voice-authentication vendor, Nuance, experienced its first successful deepfake attack on a financial services client late last year.
With the rapid advancement of AI technology, its increased accessibility, and the abundance of voice recordings available on platforms like TikTok, Facebook, Instagram, and YouTube, the ideal conditions have been created for AI scams involving voice impersonation.
What measures should you take to protect yourself? To start, share this article with your staff to ensure they are informed about these types of scams. Instruct them to always confirm any fund transfer requests with you via text message or another form of communication before proceeding. If you're not a business owner, you can apply the same precaution with your family by establishing a code word or another method to verify the caller's authenticity.
Additionally, scrutinize the caller ID. If it appears unfamiliar or is a blocked number, treat it as a significant red flag for a potential scam. Even if the voice on the other end sounds familiar, hang up and call the person directly or reach out to their supposed location, whether it's their school or office.
If the caller is pressing for an immediate money transfer or a Bitcoin payment with an intense sense of urgency, consider this another major warning sign. Legitimate emergencies don't typically involve highly suspicious payment demands.
In the world of business, you've toiled and persevered to reach your current position, navigating various risks and threats along the way. These threats are ever-present, and the higher you ascend, the more they lurk around every corner, waiting to strike. Regardless of your perception of your size or significance, you are a potential target, and taking a lax approach to cybersecurity and the associated risks is a certain way to fall victim to theft.
If you want to safeguard yourself from such threats, click here to request a complimentary Cyber Security Risk Assessment to evaluate your organization's current protection against known predators. If you haven't had an independent third party conduct this audit in the last six months, it's high time you did. This assessment is entirely free and confidential, without any obligation. Voice scams represent only the latest wave of threats targeting small business owners, with those who fail to "check the locks" on their current IT company being the most vulnerable. Secure your complimentary Risk Assessment today.
