Title: $1.1 Billion Lost to AI-Driven Fraud Targeting Older Americans: Senate Committee
According to the Senate Committee on Aging, older Americans have suffered losses of $1.1 billion in 2022 due to AI-driven fraud schemes. These scams often involve AI-generated technology that mimics the voices of people known to the elderly.
During a hearing on AI scams, the committee highlighted the findings published in the annual fraud book by Senator Bob Casey, which shed light on the most commonly used scams in 2022. The book revealed that from January 2020 to June 2021, the Federal Bureau of Investigation reported losses of $13 million related to grandparent and person-in-need scams. However, Senator Elizabeth Warren cautioned that these estimates are likely an underestimate.
Warren emphasized that many victims do not report the fraud they experience, indicating that the actual prevalence of these scams is much higher than reported data suggests. In light of these alarming figures, Casey called for federal action through legislation to effectively address the problem of AI-driven scams.
The Committee’s fraud hotline received nearly 700 new complaints in 2022, bringing the total number of complaints since 2013 to 11,800. Among the most frequently used scams listed in the fraud book by McKnight’s Senior Living were financial services personation and fraud, healthcare and health insurance scams, robocalls and unsolicited calls, tech support and computer scams, romance scams, government imposter scams, identity theft, sweepstakes and lottery scams, business impersonation and shopping scams, as well as person-in-need and grandparent scams.
The dangers of AI-driven scams were highlighted by attorney Gary Schildhorn from Philadelphia, who narrowly avoided falling victim to an AI-driven scam targeting him for $9,000. The scammer impersonated Schildhorn’s son’s voice, claiming the money was needed to bail him out of jail for causing a car accident. Schildhorn was convinced by the exact replication of his son’s voice on the phone, but fortunately, he realized it was a scam after confirming with his daughter-in-law.
Schildhorn expressed concern over the use of advanced artificial intelligence in cloning voices, posing a riskless avenue for fraudsters to prey on unsuspecting individuals.
In order to combat these fraudulent activities, it is crucial for federal authorities to take immediate action through legislation. As AI technology continues to evolve, it is imperative to develop robust security measures and educate the public about these scams to protect vulnerable populations, like older Americans, from falling victim to AI-driven fraud.
In conclusion, the alarming amount of money lost to AI-driven fraud targeting older Americans has raised concerns among lawmakers. The prevalence of these scams, coupled with the advancement of AI technology, calls for urgent action to protect vulnerable individuals and minimize financial losses.
