New AI-powered fraud attacks against businesses: exploiting individual vulnerabilities

By Éric AGGREY

In recent years, artificial intelligence has been revolutionized by many advances in the world of science, mathematics, physics, etc. There were challenges and problems that could not be solved in our lifetime, but now AI is solving these kinds of problems and challenges beyond human performance and accuracy.

AI is evolving rapidly every year, month, day, minute and second. Companies have been facing a range of threats in the business world, many of which are driven and fueled by the rise and advancement of artificial intelligence (AI).

With its remarkable advancements brought to the business community such as analyzing data with powerful AI tools, integrating AI into their product design system for tailor-made data and voice packages , automations and customer services. Businesses have been vulnerable to all kinds of cyber risks and threats exploiting individual employees or customers.

This comes in a form of social engineering, phreaking, pharming, obfuscation and the most common one is phishing. These juicy scams are increasingly targeting businesses by exploiting the vulnerabilities of individuals within those organizations, creating a significant risk that every business owner and employee should be aware of.

Rise in AI-powered scams

AI is a new type of cyberattack that cybercriminals are using to attack businesses by exploiting individual vulnerabilities. These attackers use machine learning, deep learning, and AI technologies to mimic human behaviors with realistic and frightening accuracy.

This scam primarily involves social engineering techniques, in which these fraudsters manipulate individuals associated with the company to gain unauthorized access to sensitive data, finances, and other valuable company resources.

The danger of these AI-based scams is how they mimic human behavior. These help them access large amounts of personal and organizational data. AI techniques and algorithms can tailor their attacks to imitate trusted individuals or common business data, making it difficult to detect fraud before it gets out of control.

How AI exploits individual vulnerabilities

Cybercriminals are in a race and the human element is often seen as the weak link when it comes to penetrating an organization’s cybersecurity defenses. Attackers use this AI to automate and refine their attacks. AI-based scammers take advantage of individuals by focusing on the psychological and behavioral patterns of their targets.

Attackers can use AI to fake emails from company executives, tricking employees into transferring funds to a fraudulent account, primarily known as a Business Email Compromise (BEC) attack. This stimulation is carried out beyond any precision and is not detected.

Chatbots and AI-based identity theft tools have become more advanced in recent years. These scammers can create phone calls that resemble real conversations with known contacts. In this case, individuals may unknowingly provide sensitive information in what they believe to be a legitimate business request.

Phishing emails are the most common attack by these cybercriminals. Fraudsters use AI to create highly convincing emails, perfectly exploiting company employees based on their responsibilities and roles.

These emails are mostly embedded malicious links which, once clicked, can allow these fraudsters to access confidential company data or gain access to the company network to steal the intent that pushes to access company resources.

Concrete consequences of these attacks for companies

The overall impact of these AI-based scams on businesses is very worrying. In addition to the loss of huge financial assets of the company, sensitive data and reputation are lost and damaged. The company in which these attacks are carried out loses the trust of its customers, partners and customers, leading to long-term consequences that go beyond the immediate monetary cost.

A recent incident involved a mid-sized company that was tricked into transferring a whopping US$750,000 to a fraudulent account after an AI-based attack impersonated the company’s CEO. It was later discovered that the scammers had been collecting data on the company CEO’s communication style and personal information for months, allowing them to create a convincing impersonation.

Protecting your business from AI-based scams and human exploits

Businesses can protect themselves and stay vigilant against these AI-based fraud attacks by implementing a strong cybersecurity culture within the company. Here are some key steps every business should take:

1. Training

Training employees is the first step in recognizing phishing emails, suspicious messages, AI robocalls, and other scam tactics. Employees need to be aware of how AI-based exploits work and how to respond to these scams.

2. Multi-Factor Authentication (MFA)

Implementing multi-factor authentication in enterprise systems strengthens the confidentiality, integrity, and availability (CIA) of information security. Even if a fraudster gains access to credentials, MFA can prevent unauthorized access and modification of sensitive data.

3. Advanced cybersecurity tools

It is essential to invest in high cybersecurity solutions that use AI to detect, notify and prevent threats in real time. These tools can automatically analyze data for unusual patterns or operations and flag potential attacks before the scammer succeeds.

4. Clear line of communication protocols

Establish clear protocols for verifying sensitive requests, including those involved in company financial transactions. Employees should verify important transactions with a phone call or in-person confirmation rather than relying solely on email, which is riskier.

5. Privacy and data limitation

Companies must minimize the amount of personal and sensitive information accessible to employees. There should be limits on who and how employees can access this information. Limiting access reduces the chances of fraudsters exploiting individual vulnerability.

Conclusion

AI continues to evolve, just like treats also increase day by day. Businesses need to stay ahead of the curve by being proactive in their cybersecurity efforts and understanding how AI-based scams target their weaker “individuals.”

The best way for businesses to stay informed and implement strong security measures is to protect against the growing scale of these AI-based fraud attacks.

Being aware of and preparing for these new threats and social security trends will not only save money, but also protect the trust and relationships the company has built with its customers and partners.

This article raises awareness of the potential dangers of AI-based scams and how businesses can mitigate them. Preparations are key in an ever-changing digital landscape and businesses that remain vigilant will be in a good position to ward off this new form of attacks that are still hitting them.

>>>the writer is an expert in cybersecurity and machine learning.