Sift's Q2 2024 Digital Trust Index reveals that the rise of generative AI is driving an increase in fraud for both businesses and consumers.
SAN FRANCISCO, June 25, 2024 (GLOBE NEWSWIRE) — Siftthe AI-powered fraud prevention platform that protects digital trust for leading global enterprises, today released its Q2 2024 Digital Trust Index, which shows that 76% of fraud and risk professionals believe their organization has been targeted by AI-enabled fraud, with more than half reporting that this type of fraud occurs daily or weekly.
The emergence and growing adoption of AI tools, including public chatbots, is enabling cybercriminals to execute increasingly scalable fraud attacks against both individuals and businesses. Across the Sift Global Data Network, blocked user-generated fraud content increased 22% in Q1 2024 compared to Q1 2023, demonstrating just how pervasive this technology has become in cyberspace. Fraudulent economy.
Previously, red flags that indicated fraud, such as typos and syntax issues, are now almost nonexistent as GenAI tools like ChatGPT allow fraudsters to craft sophisticated, persuasive copy. Using phishing emails, photo and video manipulation, and voice duplication, fraudsters are evading traditional fraud detection techniques, posing significant financial and reputational risks to businesses of all sizes.
“Fraudsters are rapidly adopting AI as a tool to power their attacks, and the impact is clearly being felt by both businesses and consumers,” said Armen Najarian, chief marketing officer at Sift. “Businesses need to invest in AI not only to combat the threat that AI itself poses, but also to 'fight fire with fire' if they want to streamline the customer experience and turn fraud prevention into profitable growth.”
Data from Sift reveals that 73% of consumers are very or somewhat confident in their ability to spot scams created using AI. Despite their confidence, nearly one-third of consumers claim they have been deceived using AI, with more than one in five falling for such a scam. Consumers are increasingly exposed to harder-to-detect scams, such as misleading AI-generated images, fake websites, and pig slaughter scams that use deepfake face swaps and GenAI-enabled conversations, fooling even the most digitally savvy consumers.
Sift's latest report also found that:
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84% of Millennials say they are very or somewhat confident in their ability to identify AI scams, compared to 81% of Gen Z, 70% of Gen X and 53% of Baby Boomers.
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21% of consumers have fallen victim to a phishing scam, with more than a third of Gen Z respondents falling for this type of scam.
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69% of consumers say it has become more difficult to spot scams.
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79% of consumers are concerned that AI will be used to commit fraud or defraud.
To compile these findings, Sift surveyed 123 fraud and risk professionals globally via an online survey, and Researchscape International on Sift's behalf surveyed 1,066 adults (ages 18 and over) across the United States via an online survey in May 2024. In addition to the consumer survey, the Q2 Digital Trust Index was compiled using data from fraud industry benchmarking resource,Five R) is the first online tool to leverage Sift's global data network, making key fraud indicators accessible to anyone across industries, geographies and times.
Click here to read Sift's Q2 2024 Digital Trust Index. here.
About Sift
Sift is an AI-powered fraud prevention platform that ensures digital trust for the world's largest companies. With deep investments in machine learning and user identity, a data network that records 1 trillion events annually, and a commitment to long-term customer success, Sift powers aggressive growth for over 700 customers. Brands like DoorDash, Yelp, and Poshmark rely on Sift to drive growth and deliver seamless consumer experiences. sift.com And follow us LinkedIn.
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Victor White
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