AI-enhanced phishing scams are cyberattacks where scammers use artificial intelligence (AI) to automate and scale social engineering. Instead of easily spotted and generic mass emails, scammers use generative AI and large language models (LLMs) in order to craft hyper-personalized and context-aware messages. These can often mimic the tone of actual institutions, executives, and colleagues.
Scammers can also use AI to research public information in order to craft targeted and flawless messages that can pass scrutiny.
Many people have the question, “what is a phishing scam?” Phishing scams are fraudulent cyberattacks by criminals who impersonate trustworthy individuals or organizations that try to trick individuals into revealing their sensitive data, for example, credit card numbers, Social Security numbers, or passwords.
What Are Some Common Forms of AI Phishing Scams?
There are many different forms of AI phishing scams that scammers may use to steal sensitive information, including people’s credit card information and passwords.
Scammers can pose as trustworthy friends, coworkers, or other entities. Common types of scams can include:
- Email Phishing: With email phishing, fraudulent emails are sent in bulk, and they often contain urgent warnings about the recipient’s account, fake invoices, or package delivery notices with malicious links.
- Spear Phishing: Spear phishing occurs when personalized emails are sent out that target a specific organization or individual.
- In these emails, personal details are used to ensure that the messages appear legitimate.
- Smishing: Smishing is a type of scam that is done over text messaging where a scammer sends an urgent message, for example, a fake bank alert trying to trick an individual into clicking a link and providing their sensitive personal information, which results in search engine phishing.
- Vishing: Vishing is a phishing scam that occurs over the phone when a scammer impersonates an entity, for example, a government official, bank staff member, or tech support, to intimidate or scare someone into sharing their personal information.
- Quishing: This is a newer tactic used by scammers that hides malicious links inside QR (Quick Response) codes, where scammers will place a fake code over a legitimate one, directing individuals to fake websites that steal their information.
What Are the Legal Consequences for AI Phishing Fraud?
Pursuant to phishing laws, there may be severe legal consequences for phishing scams and internet fraud, which may include incarceration and substantial criminal fines. Scammers can be prosecuted for federal crimes, such as wire fraud or identity theft.
Both the federal government and individual states may have criminal statutes for wire fraud, meaning the charges and penalties scammers may face can vary depending on the facts of the case. Under federal laws, defendants convicted of wire fraud can face not more than 20 years in prison and fines, with higher penalties in certain cases, such as those affecting a financial institution. In some cases, they may face a combination of both for each act of criminal fraud.
Depending on the facts of the incident, the defendant may also be charged with identity theft at the federal and state levels. A convicted defendant can face incarceration, restitution, criminal fines, and forfeiture of property.
If the negligence of a business permitted a phishing attack or a data breach to occur, the entity may face compliance penalties, regulatory fines, and class-action lawsuits from the victims.
How Can I Avoid Being a Victim of an AI Phishing Attack?
An individual may take many different steps to avoid being a phishing scam victim, which are discussed below.
Look for Warning Signs
There will often be warning signs signaling that a phishing scam may be occurring, including the sender rushing for payment, asking for sensitive personal information, or a link or important detail being different or slightly misspelled.
Create a Code Word
Creating a code word to use with family and close friends to use during any unexpected or urgent phone calls can be used to make sure an individual knows they are talking to the person and not a scammer.
Go Directly To the Website
If an individual receives a link or message they are unsure of, they should navigate directly to the official website or call the official phone number instead of clicking on the unexpected link or request.
Do Not Make Up-Front Payments
Up-front payments should not be made in certain situations. Legitimate employers will not require payments for someone to get a job and will not request payments via wire transfers, cryptocurrency, or gift cards. If something appears off, an individual should contact the business or company directly using their phone number or website.
How to Report a Scam and Protect Yourself from AI Phishing Attacks
When an individual has been the victim of a phishing scam, they should act quickly to protect their money and their identity, which can be done by taking the following steps:
- Securing all accounts by changing passwords
- Running anti-virus software on the device that was used
- Calling the bank and credit card company to inform them of the issue and determine what steps should be taken
- Placing a free fraud alert by contacting one of the three major credit bureaus, including Experian, Equifax, or TransUnion
- Filing an official report with the FBI Internet Crime Complaint Center and the Federal Trade Commission (FTC)
How Can an Attorney Help Me if I’ve Been Scammed?
An AI disputes lawyer can help their client with any legal issues related to phishing scams, including how to report a scam. This can include helping their client recover the money they lost, navigate complex bank rules, and defend them against a lawsuit that arises if a data breach occurred related to the scam.
Helping with Stolen Money
A lawyer can work with banks, law enforcement, and digital forensic experts to figure out where their client’s money went and to freeze their accounts.
Dealing with Insurance Claims and Banks
Usually, a bank will have time limits for fraud claims. The Electronic Fund Transfer Act may place a cap on a victim’s liability if they report the unauthorized electronic transfer within two days. This can vary depending on the account type, the timing, and the nature of the transfer.
A lawyer will help make sure that all deadlines are met and that the bank investigates the claim. Additionally, a lawyer can help file their client’s claim with their insurance company, if needed.
Filing Reports with Law Enforcement and the Government
If a scammer’s scheme is severe, it may be necessary to file reports with the Federal Trade Commission (FTC) or the FBI’s Internet Crime Complaint Center (IC3). A lawyer will be able to help prepare and submit these reports accurately as well as meet any required deadlines.
Managing a Business’s Data Breach Liability
If the email of a business was hacked and a phishing scam resulted in a data breach, it may result in a lawsuit from the affected customers. A lawyer can help the business by investigating the breach, notifying the individuals who were affected, and defending the business in any lawsuits filed against it.
Filing a Lawsuit
A lawyer can help their client follow an AI lawsuit to recover their losses. Having an attorney will ensure that all necessary documents are filed on time and no rights are inadvertently waived.
Should I Hire a Lawyer for Help with an AI-Enhanced Phishing Issue?
Yes, you should hire a lawyer for assistance with an AI-enhanced phishing issue. A criminal lawyer can assist you with all aspects of your phishing claim, whether you are the victim or the business that was affected by the phishing scam.
You can take advantage of LegalMatch’s no-cost attorney matching services in a short amount of time by completing the online intake process to be matched to a local lawyer who can help.
