I have written much about how to avoid financial scams, but as soon as an article goes to print a new slew of schemes is already being introduced. There isn’t time or space to list all the ways criminals will try to separate you from your money. Recently, a new type of scam has started to pop up, driven by artificial intelligence, or A.I..
A.I. is a powerful tool and its ability to check all the boxes for the perfect scam is getting scary. Consider that in order to pull off a scam there are some key elements that come into play. First, the scammers create an emotional situation. People don’t think clearly when they are either very greedy or very scared, so both emotions are key to a scammer getting you to drop your guard. Another critical element is for the thief to quickly create a connection with you. People do business with people they know, so they want to create that relationship so you feel as if you know them and can relate.
We live in a very connected and open world. We often talk about how important privacy is, yet the very nature of the lives we live is a bit contrary to the definition of privacy. Not only is a tremendous amount of information about us available online, but most of us also actually contribute to our own lack of privacy by the things we openly share. Many people post so many pictures and updates about their lives on such a regular basis that it’s almost frightening how much information they are giving out. At the extreme, there are those who create daily videos of the inner workings of their family for all the world to see.
Imagine if you combined the power of A.I. and its unlimited information gathering ability, with the evil designs of a scammer out to get your money. Using the ability of this technology to gather very personal information about a potential victim, the criminal would have little trouble creating that connection which would leave you vulnerable. They would also know what your emotional hot buttons are that they need to push. The possibilities are frightening to think about. Add to that the increasing ability for A.I. to actually imitate a person’s voice (yes, it can do that) and things could get ugly very quickly. So let me offer two pieces of advice which I have personally used that I believe can help defeat even the worst of these A.I. assisted criminals.
First, establish a code word or phrase for your family that no one else knows. When we had a young family we used this with our kids in case anyone ever approached them pretending to be sent by their parents. In a moment of extreme emotions, you could use this to verify that the person you are talking to is who they say they are.
Second, follow a principle that I learned directly from a professional scammer. He worked in what is known as a boiler room. This is essentially a room full of highly trained individuals, skilled in pushing people into quickly parting with their money. He told me that they followed a carefully scripted pitch designed to heighten the emotions thus leading the victim to make a quick decision without properly evaluating what they were doing. He told me they were taught to only speak with the first person to answer the phone and if that person ever insisted on getting another person on the phone to hear the pitch, like a spouse or friend, they were to hang up immediately and make the next call. He said if the person brought a third party into the situation, someone who was not emotionally involved, the deal would always be killed so there was no point in wasting more time.
I have found this to be true when people have brought scams to my attention. The person scammed almost always acted alone. There are many organizations that protect their people by instituting some form of the buddy system into their practices. I strongly suggest everyone do the same when it comes to personal financial decisions. A salesperson who pushes back against your request to seek outside advice should be the reddest of red flags.
Ironically, I believe some of the best defenses against modern high-tech scams, is the old-fashioned way friends and family took care of each other. Use these trusted connections to help keep yourself safe.
Dan Wyson, CFP® is a long running national financial columnist, author of several books and CEO/Founder of Wyson Financial/Wealth Management 375 E. Riverside Dr. St. George, UT 84790 – 435-986-9525 Securities and Advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a registered investment advisor.
