Artificial Intelligence and Fraud | Cash Course | PragerU Kids

Hey, Cash Course fans, before we start the show, remember that you can get hundreds of free educational videos for all ages at PregnerUKids.com. Subscribe today and never miss an episode. Hello? Oh, hi, Mom. Yeah, I'm still at the coffee shop. What? An accident? Where are you? You need how much money? Wait, you told me earlier that you would be at home all day. Wait, is this a scam? Uh-huh, you can't fool me. I've watched every episode of... As humans, we spend most of our lives learning, which is important for our own personal growth as well as the growth of society. But there's a new kind of learning going on today, the learning of machines. Artificial intelligence, or AI, is the use of computers and machines to do tasks that typically require human intelligence, like writing, analyzing, and collecting. While AI has been around for a long time, today the tools have become more powerful and more available to the public than ever before. And just like any tool, it can be used in both productive and fraudulent ways. Did you just steal my line? Is that a crime? No, but AI voice cloning is, which is a rising trend where fraudsters use artificial voicemails or messages to scam people out of money. Using just a few seconds of someone's voice, AI algorithms can create a voice clone that can be used to target specific people with information that seems credible. For example, a parent may call saying they need money because they've been in an accident or been robbed. The voice clone will ask you to pay them via hard-to-trace methods like wire transfers, gift cards, or cryptocurrency. 77% of people who responded to a survey in 2023 reported losing money as a result of AI voice cloning. 36% of respondents claimed to have lost between $500 and $3,000 and 7% claimed to have lost between $5,000 and $15,000. But it's not just the phone calls or the fake voices that'll get you. That's right. Another fraudulent use of AI involves fake emails, websites, or other apps to get you to reveal personal or financial information. This is traditionally known as phishing, and it used to be easy to spot red flags such as poor grammar and spelling. However, AI has improved this scam in what is known as AI-enhanced phishing, where scammers can generate accurate text in seconds that can easily impersonate the tone, clarity, and believability of genuine messages. The scammer doesn't even need to speak English for this to work. Be wary of any messages asking you for personal information. The days when foreign princes would email offering their oil fortune if you wired them some money. Did you ever fall for it? Maybe. Let's just say I learned the hard way to be careful who to trust with my money. I'm glad you brought that up because there's also AI investment fraud. Many people use the hype of this new technology to convince others to invest with them, which can lead to potential scams. There are two ways this plays out. One is when individuals or groups promote the use of AI to generate returns, while the other just claims to use AI, but they actually don't. In either situation, they may boast high returns with low risk, using language like our AI trading system can't lose. These promises are likely too good to be true, which leads many unsuspecting people to invest and not get the returns they were promised. They can even lose all their money. Whether an investment platform is using AI or claiming to, be cautious about who you trust. Now that you know about these AI scams, here are some steps you can take to beat the machines. One, protect yourself. Be careful what information you make public on social media. Your location, phone number, or email could be all a scammer needs to make an attack. Go through your devices regularly to delete old accounts and audio recordings or clips. Minimize the available information an AI could use to impersonate you. Two, go to the source. When you receive something that looks or sounds fishy, stop and go to the original source. If the security of your bank account is in question, call the bank directly or log in through their official website. If a friend or family member calls you needing money, text or call them back to verify the information. It only takes a couple of extra minutes to confirm, which is a small inconvenience compared to losing your personal or financial information. Three, have a plan. Create a code word to use with your family and friends to confirm their identity. This allows you to have a quick and easy way to verify it's really them and provides you with an extra measure of security against fraud. Technology is an amazing tool when it is used in the right hands. The same goes for artificial intelligence, which has the ability to make human life easier but can also be easily abused. Even though it may feel like the machines are growing faster and smarter than us, taking proactive steps to learn the warning signs will help you protect yourself. AI isn't that scary. It still can't tell the difference between a chihuahua and a blueberry muffin. Watch more at PragerUKids.com and parents, don't forget to subscribe.