Report: Two-thirds of Businesses Face AI-Fueled Fraud Regularly
June 25 2024 - 11:30AM
Sift, the AI-powered fraud platform securing digital trust for
leading global businesses, today released its Q2 2024 Digital Trust
Index, which found that 76% of fraud and risk professionals believe
their business has been targeted by AI fraud, with over half
reporting this type of fraud happening daily or weekly.
The emergence and increased adoption of AI tools, including
publicly available chatbots, enables cybercriminals to conduct
growingly scalable fraud attacks against both individuals and
businesses. Across the Sift Global Data Network, blocked
user-generated scam content rose by 22% in Q1 2024 vs. Q1 2023,
showing how pervasive this technology has become in the Fraud
Economy.
Previous red flags indicating a scam, like typos and syntax
issues, are now more rare, with GenAI tools like ChatGPT allowing
fraudsters to create polished and convincing written content.
Fraudsters employ phishing emails, photo and video manipulation,
and voice cloning to circumvent traditional fraud detection
techniques, posing significant financial and reputational risks to
businesses of all sizes.
"Fraud actors are rapidly adopting AI as a tool to supercharge
their attacks, and both businesses and consumers are clearly
feeling the impact," said Armen Najarian, Chief Marketing Officer
at Sift. "Businesses must invest in AI to ‘fight fire with fire’ to
not only counter the threats posed by AI itself, but to streamline
the customer experience and turn fraud prevention into profitable
growth.”
Sift data also revealed that 73% of consumers are very or
somewhat confident they’d be able to identify a scam that was
created using AI. Despite their conviction, nearly a third of
consumers claim they have had someone try to defraud them using AI,
and more than one in five are falling for these scams. Consumers
are increasingly being exposed to hard-to-spot scams like
misleading AI-generated images and imposter websites as well as pig
butchering scams leveraging deepfake face-swapping and
GenAI-enabled conversations, fooling even the most digitally savvy
consumers.
Sift’s newest report also found that:
- 84% of Millennials say they’re very or somewhat confident
they’d be able to identify an AI scam, compared to 81% of Gen Z,
70% of Gen X, and 53% of Baby Boomers.
- 21% of consumers have been “phished” successfully, with over a
third of Gen Z respondents falling for these types of scams.
- 69% of consumers say it has become more difficult to identify
scams.
- 79% of consumers are concerned about AI being used to defraud
or scam them.
To gather these findings, Sift polled 123 global fraud and risk
professionals via online survey, and on behalf of Sift,
Researchscape International polled 1,066 adults (aged 18+) across
the United States via online survey, in May 2024. In addition to
surveying consumers, the Q2 Digital Trust Index relies on data from
the Fraud Industry Benchmarking Resource (FIBR), a
first-of-its-kind online tool powered by Sift’s Global Data
Network, that allows anyone to access key fraud metrics across
industries, geographies, and time.
To read Sift’s Q2 2024 Digital Trust Index, click here.
About SiftSift is the AI-powered fraud platform
securing digital trust for leading global businesses. Our deep
investments in machine learning and user identity, a data network
scoring 1 trillion events per year, and a commitment to long-term
customer success empower more than 700 customers to grow
fearlessly. Brands including DoorDash, Yelp, and Poshmark rely on
Sift to unlock growth and deliver seamless consumer experiences.
Visit us at sift.com and follow us on LinkedIn.
Media Contact:Victor WhiteSenior Director of
Corporate Communications, Siftpress@sift.com