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Phishing Scams
AI Fraud artificial intelligence scams Colorado scams Cyber Fraud financial scams 2024 Investment fraud online fraud prevention Phishing Scams

Colorado Faces Growing Financial Losses from AI-Powered Scams in 2024

 

Colorado is on track to suffer even greater financial losses from scams by the end of 2024 compared to the nearly $100 million stolen in 2023. According to the Colorado Attorney General's Office, the rapid integration of artificial intelligence (AI) into everyday life may be driving this increase.

Gone are the days when misspelled words, unprofessional websites, and suspicious email domains were telltale signs of scams. With AI, criminals now replicate the voices of loved ones to stage fake emergencies, tricking victims into sharing money or sensitive information. "Artificial intelligence takes existing scam opportunities and puts them on steroids," said Colorado Attorney General Phil Weiser.

In 2023, the FBI Denver Field Office reported that scammers stole $187 million from nearly 11,500 residents in Colorado—an increase of $9 million compared to 2022. Investment fraud ($50 million), business email compromise ($57 million), and tech support scams ($23 million) were the top schemes contributing to these losses.

Weiser's office received a record-breaking 20,390 fraud complaints in 2023, up from 19,519 in 2019, reflecting a growing trend. Colorado now ranks seventh nationwide for scam complaints per capita. Many of these cases were reported through StopFraudColorado.com, a platform providing fraud education and reporting tools.

One alarming scam, known as the "grandparent scam," highlights how scammers use AI to imitate a grandchild's voice. The victim is told their grandchild is in jail abroad and needs money urgently. "One of the scary parts is many people have a hard time understanding the difference between deepfakes and reality," Weiser said. He advises skepticism: "Don't trust those calls. Hang up and verify the information with the appropriate source."

Younger internet users and older adults are particularly vulnerable. Weiser added, "AI is not new, but the widespread use of tools like ChatGPT has taken adoption to a new level."

Austin Hastings, assistant vice president at Alpine Bank, noted that scammers adapt their strategies once people stop falling for certain tricks. Recent scams involve AI-generated phishing emails and websites that convincingly mimic legitimate organizations.

To combat scams, Alpine Bank suggests:

  • Avoid clicking on unexpected links. Use verified websites or saved URLs.
  • Never share financial information or passwords over email or phone.
  • Beware of too-good-to-be-true deals and stick to trusted retailers.
  • Monitor bank accounts regularly for suspicious charges.
  • Report fraudulent activity to authorities promptly.
  • The Colorado Privacy Act, enacted in 2021, provides residents with tools to protect their data, such as opting out of targeted advertising and requiring entities to safeguard personal information.

"It's a dangerous world out there, and AI is making it more dangerous," Weiser warned. "Please protect yourself and those you love."
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TransUnion
Customer Data Customer Data Exposed Data Breach Fidelity Investment fraud OWASP TransUnion

Fidelity Investments Data Breach Affects 77,099 Customers

 

Fidelity Investments recently disclosed a data breach that impacted 77,099 customers, with details made public in an October 9 filing with the Maine Attorney General’s Office. The breach occurred on August 17, 2024, and was discovered two days later on August 19. According to a letter sent to those affected, unauthorized access was gained to two newly established customer accounts. Using these accounts, the attackers were able to view and obtain personal information, although Fidelity noted that account balances or transactions were not viewed. 

While Fidelity did not disclose the specific types of data stolen, it has assured affected customers by offering 24 months of free credit monitoring and identity restoration services through TransUnion. The absence of service disruptions during the breach suggests that the attack was likely not ransomware-based, although the form of the attack remains undisclosed. Fidelity’s spokesperson, when addressing the breach, said the attackers “viewed customer information” without directly accessing customer accounts. Security experts believe that this kind of attack likely exploited a vulnerability in Fidelity’s web applications. 

Venky Raju, the field chief technology officer at ColorTokens, noted that the attack vector likely involved a misconfiguration in customer-facing applications, allowing the attackers to establish new accounts and access customer information through them. This method aligns with known vulnerabilities in web security, including those listed in the OWASP Top 10 Web Application Security Risks. Exploiting these vulnerabilities can allow attackers to bypass account security and access sensitive data. Cybersecurity analysts have speculated that the breach was primarily an information-gathering exercise. According to Sarah Jones, a cyberthreat intelligence research analyst at Critical Start, the motive behind the breach likely involved gathering data that could be used for future attacks. 

These could range from identity theft and phishing campaigns to more severe scenarios like ransomware demands. The personal information obtained through such breaches can be valuable on its own, or it can serve as a means for launching further, more sophisticated cyberattacks. As the investigation continues, Fidelity is working with external cybersecurity experts to understand the scope of the breach and to implement additional security measures. Customers are encouraged to stay vigilant and monitor their accounts for unusual activity. By providing affected users with credit monitoring and identity restoration services, Fidelity aims to mitigate the risks posed by the breach while ensuring that proper measures are put in place to prevent future incidents.  

While the exact impact of the data breach remains unclear, it serves as another reminder of the growing threats to personal information in the digital age. The evolving tactics of cybercriminals, particularly in exploiting vulnerabilities in web applications, highlight the importance of continuous security assessments and prompt responses to emerging threats.
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User Privacy
Banglore Cyber Security Data Privacy Investment fraud Law Enforcement Phising Attacks Scam User Privacy

Bengaluru Police Bust Rs 854 Crore Cyber Fraud

The Bengaluru Police have made significant progress in uncovering a sophisticated cyber investment fraud that involved an astonishing amount of Rs 854 crore. The study clarifies the complex network of mule accounts that was essential to carrying out this financial crime.

The cyber investment fraud, as reported by various news sources, involved the arrest of six individuals allegedly orchestrating the massive scam. The criminals exploited unsuspecting victims through promises of lucrative investment opportunities, ultimately siphoning off a colossal sum of money.

Mule accounts, a term less known to the general public, have emerged as a linchpin in cybercrime operations. These accounts act as intermediaries, facilitating the movement of illicit funds while providing a layer of anonymity for the perpetrators. The Bengaluru Police, in their diligent investigation, uncovered the intricate network of mule accounts that were instrumental in the success of this cyber investment fraud.

The criminals behind the fraud reportedly used a combination of advanced technology and social engineering tactics to lure victims into their scheme. Once hooked, the victims were persuaded to invest significant sums of money, which were then funneled through a complex web of mule accounts to conceal the illicit transactions. The scale and sophistication of this operation highlight the evolving nature of cybercrime and the challenges faced by law enforcement agencies in tackling such crimes.

The timely intervention of the Bengaluru Police showcases the importance of proactive measures in combating cybercrime. The investigation not only led to the arrest of the alleged perpetrators but also served as a wake-up call for individuals to exercise caution and due diligence in their online financial activities.

As the digital landscape continues to evolve, the need for cybersecurity awareness becomes more critical than ever. The Bengaluru case underscores the necessity for individuals, businesses, and law enforcement agencies to collaborate in developing robust cybersecurity measures. Education about the tactics employed by cybercriminals, such as the utilization of mule accounts, is crucial for staying one step ahead in the ongoing battle against online fraud.



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spam email
Cyber Fraud insurance Investment fraud Scammers Scams spam email

SEC: Watch Out for Hurricane Ida Related Investment Scams

 

The Securities and Exchange Commission (SEC) has issued a warning about fraud associated with Hurricane Ida, which wreaked havoc in numerous states last week with torrential rain and tornadoes, leaving millions without power. 

The SEC's Office of Investor Education and Advocacy releases investor alerts regularly to caution investors about the latest investment frauds and scams. Fraudsters would most likely target people who may receive compensation from insurance companies in the form of huge payouts as a direct result of Hurricane Ida's destruction. 

The SEC explained, “These scams can take many forms, including promoters touting companies purportedly involved in cleanup and repair efforts, trading programs that falsely guarantee high returns, and classic Ponzi schemes where new investors' money is used to pay money promised to earlier investors." 

"Some scams may be promoted through email and social media posts promising high returns for small, thinly-traded companies that supposedly will reap huge profits from recovery and cleanup efforts." 

AccuWeather CEO, Dr Joel Myers calculated that Hurricane Ida caused almost $95 billion in total damage and economic loss. Millions of individuals will now have to deal with insurance companies to cover the cost of water damage and other difficulties caused by the hurricane's aftermath. 

The SEC added that following the devastation by Hurricane Katrina in 2005, they were compelled to take action against hundreds of false and misleading statements concerning alleged business prospects.

Precautionary Measures

In the context of mitigating the risk and preventive measures, SEC urged, "Be sceptical if you are approached by somebody touting an investment opportunity. Ask that person whether he or she is licensed and whether the investment they are promoting is registered with the SEC or with a state." 

"Take a close look at your entire financial situation before making any investment decision, especially if you are a recipient of a lump sum payment. Remember, your payment may have to last you and your family for a long time." 

This advisory follows the one issued by the FBI's New Orleans office, which warned the public about an elevated risk of scammers attempting to profit from the natural calamity. 

"Unfortunately, hurricane or natural disaster damage often provides opportunities for criminals to scam storm victims and those who are assisting victims with recovery," the FBI warned. 

The FBI also offered a list of safeguards that victims of natural disasters should follow to avoid getting scammed, including: 
  • Unsolicited (spam) emails should be ignored. 
  • Be cautious of anyone posing as government officials and requesting money via email. 
  • Clicking on links in unsolicited emails is not a fine decision. 
  • Only open attachments from known senders; be wary of emails purporting to have photos in attached files, as the files may contain viruses. 
  • Do not give out personal or financial information to anybody asking for donations; doing so might jeopardize your identity and leave you vulnerable to identity theft. 
  • Be vigilant of emails purporting to provide employment. 
  • Before transferring money to a potential landlord, do your research on the advertisement.
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