Seniors are frequent targets of AI fraud scams — and voice cloning raises the risks

Artificial intelligence (AI) is making fraud schemes more convincing and increasing the financial risks facing older Americans, according to cybersecurity and consumer protection expert Steven J. J. Weisman.

Weisman — an attorney, author and senior lecturer at Bentley University — discussed the growing sophistication of scams during a presentation hosted by Fairway Home Mortgage on Wednesday. The session focused on protecting seniors from financial exploitation, identity theft and other forms of fraud.

Americans reported losing more than $15.9 billion to fraud and scams last year, according to Federal Trade Commission figures cited by Weisman. He said the actual total is likely much higher because many victims do not report losses due to embarrassment or other reasons.

Older adults and members of Generation Z are among the groups most frequently targeted by scammers, Weisman said. While technology has expanded the reach of fraud schemes, artificial intelligence has also made it easier to create realistic fake voices, videos and websites.

Weisman kicked off the session by explaining that fraudsters target the brain’s amygdala, which governs quick, emotional responses. Seniors are especially vulnerable because age-related changes reduce skepticism, a finding that Weisman backed through studies from Cornell University and the University of Iowa.

AI-generated voice cloning has increased the risks associated with family emergency scams, sometimes called grandparent scams. Fraudsters can collect audio recordings from social media and use them to imitate relatives who appear to be calling for urgent financial help.

“With AI now … they use artificial intelligence to change their facial features. They’ll also be using voice cloning, so they’re going to sound legitimate and look legitimate,” Weisman said

Impersonation scams remain among the most common forms of fraud, with criminals posing as government agencies, financial institutions or well-known companies and using spoofed phone numbers to make calls appear legitimate.

“The IRS, Social Security and the FBI are not going to initiate contact with you by calling, but scammers will,” Weisman said.

The rise of crypto scams

In recent years, cryptocurrency has also become a common component of investment and impersonation scams. In some cases, victims are instructed to withdraw money from their bank accounts and deposit it into cryptocurrency ATMs, often after being told their accounts or identities are at risk.

“Whenever you’re asked to make a payment through a crypto ATM, it’s going to be a scammer,” Weisman said.

Technology support scams also disproportionately affect older consumers. Such schemes often begin with a pop-up warning about a computer security problem and direct users to call a phone number or provide remote access to their devices.

Legitimate technology companies generally do not send unsolicited pop-up messages with phone numbers for customers to call, Weisman said. His advice is to avoid clicking links or granting remote access, and to restart computers if suspicious warnings appear.

Social media also has become a major source of fraud, with criminals using personal information shared online to create targeted phishing attempts. Weisman warned users to be cautious about advertisements, messages and offers appearing on social platforms, even when they appear to come from friends.

To alleviate risk, Weisman said consumers can reduce their exposure by using unique passwords, enabling multifactor authentication and keeping security software updated. He also recommended placing security freezes on credit reports, including those of children, to help prevent criminals from opening accounts or obtaining loans using stolen identities.

Consumers should use credit cards rather than debit cards for purchases when possible because credit cards generally provide stronger protections against unauthorized transactions, he said. Weisman recommended that payment services such as Zelle and Venmo be limited to trusted friends and family members.

This article was written by Sarah Wolak and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.