Cybersecurity experts are sounding the alarm about a surge in online financial scams, driven by artificial intelligence (AI), which they warn is becoming increasingly difficult to control. This warning coincides with an investigation by AAP FactCheck into cryptocurrency scams targeting the Pacific Islands.
AAP FactCheck's analysis of over 100 Facebook accounts purporting to be crypto traders reveals deceptive tactics such as fake profile images, altered bank notifications, and false affiliations with prestigious financial institutions.
The experts point out that Pacific Island nations, with their low levels of financial and media literacy and under-resourced law enforcement, are particularly vulnerable. However, they emphasize that this issue extends globally.
In 2022, Australians lost over $3 billion to scams, with a significant portion involving fraudulent investments. Ken Gamble, co-founder of IFW Global, notes that AI is amplifying the sophistication of scams, enabling faster dissemination across social media platforms and rendering them challenging to combat effectively.
Gamble highlights that scammers are leveraging AI to adapt to local languages, enabling them to target victims worldwide. While the Pacific Islands are a prime target due to their limited law enforcement capabilities, organized criminal groups from various countries, including Israel, China, and Nigeria, are behind many of these schemes.
Victims recount their experiences, such as a woman in PNG who fell prey to a scam after her relative's Facebook account was hacked, resulting in a loss of over 15,000 kina.
Dan Halpin from Cybertrace underscores the necessity of a coordinated global response involving law enforcement, international organizations like Interpol, public awareness campaigns, regulatory enhancements, and cross-border collaboration.
Halpin stresses the importance of improving cyber literacy levels in the region to mitigate these risks. However, Gamble warns that without prioritizing this issue, fueled by AI advancements, the situation will only deteriorate further.