New AI System Uses Artificial Intelligence to Fight SMS Phishing Scams, Protecting Kiwis from Financial Losses
A groundbreaking artificial intelligence (AI) system has been developed to combat the rise of SMS phishing scams, also known as smishing, that have been targeting people in New Zealand. The system, created by Dolla, a peer-to-peer payment app, aims to detect and filter out fraudulent text messages, saving users from potential financial losses.
According to the government’s Computer Emergency Response Team (Cert NZ), Kiwis lost approximately $263,499 to text scams in the first six months of this year alone. These scams involve fraudsters impersonating government organizations, companies, and banks, and tricking recipients into clicking on malicious links or revealing their banking information.
Dolla’s AI-enabled security system assesses text messages and identifies suspicious content in a similar way to an email spam filter. During beta testing, the technology successfully captured and filtered out 98% of all scam messages received by users from unknown senders. With a growing database of known scams, combined with machine learning and AI, the system’s accuracy is expected to increase over time, catching even the most sophisticated SMS scams.
For years, New Zealanders have had to rely on their intuition alone to detect these scams, but fraudsters have become more crafty in making their texts appear legitimate. Recognizing the significant financial impact on Kiwis, Dolla’s CEO, Ben Lynch, believes it is their responsibility as a financial services provider to leverage the latest technologies and help protect their users from these fraudulent schemes.
To access the AI system, users don’t necessarily need to use Dolla as their payment app, but they do need to download the respective app. However, Cert NZ senior threat analyst Sam Leggett advises caution when granting a third-party app access to personal messages, as the safety and privacy features of such apps are often dictated by app or Play Store requirements.
The system diligently adheres to Apple’s SMS and MMS message filtering rules, which means Apple only shares messages received from unknown contacts or those not frequently interacted with. Dolla ensures message authenticity is determined on the user’s device, avoiding the need to share any data. If authentication is not possible on the device layer, Apple securely forwards the message to Dolla’s servers for processing. If the message is deemed personal, Dolla promptly deletes it to maintain privacy.
Cert NZ has received 399 reports of victims falling for text scams in the first half of this year alone. Some of the prevalent scams involve impersonating government agencies such as NZTA, the police, or New Zealand Post, while others imitate major banks like ASB and BNZ, claiming account suspensions. These scams have become increasingly prevalent as scammers utilize sim boxes to send mass messages and take advantage of people’s inclination to open texts instantly.
The introduction of Dolla’s AI-powered system offers a significant advancement in the fight against smishing scams. By adapting to emerging technologies like machine learning and AI, the system provides an automated front-line of defense against fraudulent texts. As the database of known scams grows, the technology will become even more accurate at detecting and filtering out sophisticated SMS scams, ultimately saving New Zealanders from potentially devastating financial losses.
In a time when fraud and deception crimes are on the rise, Dolla’s innovative solution is a welcome step toward protecting individuals and ensuring greater financial security. As technology continues to evolve, it is crucial for individuals to remain vigilant and leverage the latest security measures to shield themselves from falling victim to these scams. By embracing AI, Dolla is playing a vital role in safeguarding New Zealanders’ funds and providing peace of mind in an increasingly digital world.
