introduction
Consumer advisor Clark Howard looks at the growing problem of criminals using artificial intelligence to scam individuals and small business owners. In this case study, we look at small business owner Mari Gomez, who fell victim to a scam that cost her almost $2,000.
scam
- victim: Mari Gomez, a small business owner who recently received her cleaning license.
- Scammers’ approach: Shortly after getting her license, Mari received a call with a lucrative offer to sign contracts for 110 homes, provided she purchased liability insurance.
- con man: The scammer, Nicole Diaz, claimed to be an agent for Coastal Insurance.
- payment method: Mari was instructed to make a down payment of $1,750 using her debit card at Chase Bank.
- result: A few hours after making the payment, all communication with the scammers ceased. When Mari contacted Coastal Insurance, she learned that Nicole Diaz was not an employee and that the company had received several similar complaints.
How AI is impacting fraud
- Increased fraud: Supervisory Special Agent Aaron Sears explained that AI streamlines the process for fraudsters, providing them with tools and examples to carry out their fraud.
- Financial impact: According to the FBI's annual Internet Crime Report, Americans have lost approximately $40 billion to scams since 2019.
Bank response
- Chase Bank's position: Because the payment was made with a debit card, Chase Bank informed Mari that they could not deposit the money into her account because it would be considered fraudulent, not fraudulent.
Precautions
- To screen a call: Do not answer calls from numbers you do not recognize, even if the caller ID appears legitimate.
- Check out the offer: Always check the legitimacy of the services offered to your business and get quotes from other sources.
- Be on your guard: If an offer seems too good to be true, it probably isn't. Don't pay for it or give out any personal information.
Key Tips
Clark Howard highlighted “what if” scenarios as a common pattern in scams: if a service requires an upfront payment or action before providing any benefits, it's often a red flag that it may be a scam.
Conclusion
Fraudsters are increasingly using AI to perpetrate sophisticated scams against small business owners and consumers. Individuals can protect themselves from becoming victims of such scams by remaining vigilant, verifying offers, and avoiding unwanted calls.
