Cyber Security Awareness Month: AI-Generated Fraudulent Identities & the ROI of Security Awareness

What Is Cyber Security Awareness Month?

In October, global attention is directed toward Cyber Security Awareness. The European Cybersecurity Month (ECSM) stands as the European Union’s annual initiative aimed at promoting cybersecurity among EU citizens and organizations. It serves to raise awareness and facilitate the sharing of best practices about Cyber Security.

AI, a Game Changer

Artificial intelligence (AI) has evolved from a science fiction concept to a pivotal technology in the era of “big data”. AI’s impact is already evident in various industries, including technology, banking, marketing and entertainment. Its versatile applications, from activity tracking on smartwatches to creating the most efficient travel routes using a map app, and from personalized content recommendations to content creation, are just a glimpse of its potential and the exciting future it holds.

AI, a Threat-Landscape Changer

Unfortunately, “there’s no rose without a thorn”. Scammers have also found ways to distort the benefits of AI for malicious purposes, posing a significant threat. Traditionally, fraudsters created false documents, reports, data and deceptive emails to support their fraud schemes. In this new technology-driven era, cybercriminals are increasing the danger of existing attacks by leveraging AI. They use AI technology to personalize scam texts and emails, making them more convincing and more complex to detect as fake. The more examples of legitimate documents available for an AI system to evaluate, the higher-quality fake the AI can generate. AI-enhanced phishing, identity theft and deepfakes are just a few new threats we must effectively combat. The Global Financial Crime Report for 2024 by Nasdaq indicates that global losses from scams total $485.6 billion. Any chances to build a robust cybersecurity business culture, preventing breaches, regulatory fines and downtime to attain business continuity?

Frauds Involving the Use of Artificial Intelligence

While chatbots are currently designed to steer clear of any illicit activities, there’s growing concern that the use of AI tools could completely transform the tactics of scammers. In the spirit of Cyber Security Awareness Month, it is essential to emphasize that artificial intelligence technology has the capability to generate highly realistic personas. Therefore, it is imperative to exercise caution when sharing personal information, particularly on social media platforms.

• Phishing

Traditional Phishing: If you click on a sneaky link in a phishing message, your passwords or personal info could be leaked. To pull this off, the phishing message needs to look like it’s from someone you trust. These messages often have grammar or spelling mistakes.

AI-Powered Phishing on the Rise: AI chatbots have pre-analyzed a large amount of text, allowing them to write accurately and reliably. They can produce error-free messages in almost any language based on keywords, which are referred to as prompts. Additionally, they are capable of successfully imitating the style of a person or organization.

• CEO Fraud

Traditional CEO Fraud: CEO Fraud is a form of spear phishing email attack in which the attacker impersonates your CEO or other executives via email or SMS. This deceptive practice aims to instill a sense of urgency and manipulate recipients into disclosing confidential HR information, transferring funds, or divulging other sensitive data.

AI Supercharges CEO Fraud: To successfully pull off CEO Fraud, the target needs to genuinely think that an executive is asking for the transfer. One effective way to achieve this is by using voice cloning to mimic the executive ‘s voice during a phone call. Cyber attackers gather voice samples of the executive they plan to impersonate, often sourcing them from online videos. They then utilize AI technology to generate a voice template and, during the call, type text that is transformed into speech, replicating the executive’s voice.

• AI-Powered Identity Theft Revolution

Fraudsters used to exploit other individuals’ identities to carry out unauthorized financial transactions. This includes opening accounts, securing loans and engaging in other illegal activities using the victims’ identities. Perpetrators typically obtained personal information by stealing documents or accessing publicly available data. AI technology has made it incredibly simple to cross-reference data and forge login credentials and ID documents to fabricate identities. When combined with authentic-looking passport photos, stolen identities become even more convincing.

• AI, The Deepfake Generator

Deepfakes, powered by advanced artificial intelligence known as “deep” learning -hence the name- have revolutionized the creation of fake images and videos. This powerful technology can produce remarkably realistic content by manipulating faces and voices, enabling the fabrication of false scenarios or the impersonation of real individuals. However, the potential misuse of deepfake technology poses significant risks, from tarnishing reputations to spreading misinformation. These manipulating creations often exhibit telltale signs such as discolored skin and distorted proportions. Inconsistencies are more noticeable when magnified.

• Ransomware

Traditional Ransomware: A ransomware attack involves the encryption of an organization’s data through the use of malware. Subsequently, cybercriminals demand a ransom in exchange for decrypting the data. This type of attack typically infiltrates an organization’s network via phishing emails, which deceive employees into interacting with a malicious link or attachment.

Ransomware Attacks Fueled by AI: The rapid advancement of AI technology has unfortunately made us more vulnerable to ransomware attacks. AI chatbots are now capable of creating highly convincing phishing messages that mimic human language with astonishing accuracy. This makes it easier for malware to sneak into our systems.

The ROI of Security Awareness: How Training Protects Your First Line of Defense

Did you know that most breaches globally (68%), whether they include a third party or not, involve a non-malicious human action, which refers to a person making an error or falling prey to a social engineering attack, as Verizon highlights? Just imagine: one careless click can end up costing your business millions! As of February 2024, the global average cost of a data breach has surged to a staggering 4.88 million U.S. dollars, up from 4.45 million the previous year, according to Statista. Security awareness training seems not to be just an extra cost—it’s a smart investment.

AI-powered Phishing, AI Supercharged CEO Fraud, AI-enhanced Identity Theft and Deepfakes have become so sophisticated that they can persuade even the most cautious individuals to click on malicious links. What’s more, even those with limited technical skills can now carry out attacks with alarming ease. Additionally, AI systems can generate even more dangerous variants of malware. As a result, the fallout from a cyberattack extends far beyond just financial losses—it can devastate your brand reputation, erode customer trust and disrupt business operations. That’s why tech-savvy organizations are turning to Security Awareness Training as a vital defense against ever-evolving threats.

At Neurosoft, we believe that education is the bedrock of security. Our innovative approach to Security Awareness Training goes beyond the basics by integrating cutting-edge, AI-driven simulations, including phishing attacks, fraud attempts and deepfake recognition. We equip your team with the skills to spot the warning signs of AI manipulation, empowering them to become a formidable first line of defense.

But we don’t stop there! When it comes to Cyber Security Awareness and Readiness, Hackcraft Red Teaming becomes your trusted ally. While our awareness training provides a solid foundation, Hackcraft’s Red Team exercises elevate the experience, replicating real-world attacks so your employees can transition from theoretical knowledge to practical action. They’ll master not only how to identify threats like phishing, social engineering and ransomware but also how to respond quickly and effectively.

At Neurosoft, our mission is to keep you ahead of the curve with a comprehensive, 360-degree approach. We seamlessly blend top-tier Security Awareness Training with premier Offensive services and Defensive solutions ensuring you are robustly protected against the cyber threats of tomorrow.

Together, let’s build a safer digital environment! Get more details on our Cyber Security Solutions here.