It is widely recognized that artificial intelligence (AI) is playing an increasing role in fraud attempts worldwide, with fraudsters using ever more sophisticated forms of deception. In this update we provide insight into some of the latest examples of AI use by fraudsters and measures being taken by the UK government to tackle the problem.
Recent examples of AI assisted fraud
Just last week, it was reported that a musician in the US has been accused of using AI tools to fraudulently stream songs on a variety of platforms in order to claim millions in royalties. In the first case of its kind, the musician has been charged with three counts of wire fraud: conspiracy to commit fraud and money laundering. The 52-year-old was able to manipulate the platforms by using thousands of bots to stream his AI-generated songs, giving fake artist names and titles. Authorities say Mr Smith claimed more than $10million in royalty payments over several years.
Also earlier this summer, the New York Times reported that a 'deepfake Elon Musk' was being used in thousands of adverts for sham businesses leading unsuspecting investors to lose millions worldwide. The 'eerily lifelike' videos of Musk are incredibly cheap and quick to produce and are being proliferated across social media to promote fraudulent businesses and investment opportunities. Deepfakes powered by AI are expected to contribute to billions of dollars in fraud losses each year, according to estimates from Deloitte.
AI-powered fraud detection
In the UK, the Government is attempting to keep pace by introducing countermeasures to tackle the use of AI in fraud. Earlier this year, the Government announced that its AI-powered fraud detection tool, the Single Network Analytics Platform (SNAP) had been upgraded with thousands of new sanctions and debarment records. The aim is to help it detect suspicious networks, activity and users that warrant further investigation for organized crime and sanctions evasion.
SNAP was launched by the Public Sector Fraud Authority in 2023 as part of its £4 million partnership with the UK based AI tech leader Quantexa. The tool will continue to be regularly updated with new datasets, each increasing the Government’s ability to detect fraud committed against the public sector.
It is hoped that with this sort of investment and innovation, authorities will be best placed to identify and prosecute fraudsters taking advantage of AI to protect individuals and businesses.
You can read further discussions around the use of the use and development of AI and what businesses can do to best prepare and respond to the threat of AI fraud on our website.
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