How AI Is Fueling Fraud: Facebook Hacking & Grandparent Scams

AI-driven scams are becoming more convincing than ever. Learn how to avoid falling victim.

Scammers are getting smarter, and with the rise of artificial intelligence (AI), their tactics are rapidly improving. From faking a trusted friend’s identity on social media to mimicking the voice of a loved one in distress, AI-powered scams are creating a new wave of fraud that’s catching even the most cautious off guard.

Recent cases, like a Palm Beach photographer who fell victim to a Facebook hack and a string of grandparent scams using AI-generated voices, show just how dangerous these technologies can be when used by Bad Actors.

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AI-Fueled Facebook Hacking in Florida

David Scarola, a professional photographer from Florida, recently fell victim to an AI-driven scam. Hackers took over both his personal and professional Facebook accounts, using AI to impersonate him in a highly convincing way. They posted a fake car ad on his account, tricking six of Scarola's friends into sending a total of $4,500 in hopes of buying the non-existent vehicle.

What’s even more shocking is how the hackers used AI to mimic Scarola’s face during a video call with one of his friends. Although the friend was initially suspicious, the AI-generated video convinced her it was really Scarola, leading her to fall victim to the scam. Her Facebook account was then hacked in a self-replicating manner, and the same fraudulent ad was posted to her profile.

This case highlights the potential of AI to impersonate people online with near-perfect accuracy, tricking even those who were initially cautious. Scarola and his friends were blindsided by the sophistication of the attack, and it’s a wake-up call to anyone who assumes they can easily detect and resist a scam.

Grandparent Scams Enhanced by AI in Canada

In another case, police in Canada, have reported a surge in "grandparent scams" (a/k/a “emergency scams”) where fraudsters use AI to make their schemes even more believable. In these scams, the perpetrators target seniors by pretending to be a grandchild in urgent need of help. Typically, the scammer claims to be in trouble—perhaps in jail—and asks the grandparent for money to cover bail.

The twist? AI is now being used to mimic the voices of grandchildren, making these scams far more convincing. In recent cases, fraudsters imitated legitimate law firms and arranged for the money to be picked up directly from the victims' homes. Some seniors have been deceived into handing over thousands of dollars, thinking they were helping a loved one in a crisis.

These scammers often instruct their victims to lie about the purpose of the money, claiming it’s for construction or renovations, and they create a false sense of urgency, telling them not to inform anyone about the situation. As AI becomes more advanced, it’s getting easier for scammers to exploit vulnerable individuals—especially seniors who might not be familiar with the capabilities of this technology.

The Growing Threat of AI Scams

AI scams are nothing new to our readers. It’s a frequent theme.

But as both these stories illustrate, the technology is getting better, allowing scammers to deceive people in ways that were once unimaginable. From deepfake videos to voice mimicking, AI is making it harder than ever to distinguish between legitimate communication and fraud.

According to the Federal Trade Commission, social media fraud alone accounted for $2.7 billion in losses from January 2021 to June 2023. With AI driving new, more sophisticated scams, these numbers will rise. The concerning part is we’re still in the early stages of the technology. Think of it as AI Scam 1.0. Future iterations will get even more sophisticated and successful.

So, how can you protect yourself and your loved ones from becoming a victim of these increasingly sophisticated AI scams?

Personal Data is the Fuel for AI Scams

Most AI scams begin with personal data. Data points like name, address, relatives, birth date, email address, voice, head shots, videos, etc. Access to personal data is critical to the successful launch of an AI scam. Whether the data points are few or many, the right combination, plus time tested psychological pressure, provide enough of an edge for the scammer.

The best proactive step you can take to defeat these is to minimize your publicly available data. You do that and you starve the AI scam beast. There are two top ways to do that:

1. Remove your personal information from the data broker sites. Once that’s done, it will also remove your information from Google search results. Not 100%, but good enough that most scammers will move on to easier targets. We did a whole series on this topic, available here.

2. Minimize what you share online, particularly social media. Consider restricting access to your profiles, particularly LinkedIn. If you have publicly available video or audio interviews, you’re at heightened risk. Here are some prior posts to help you get started.

How and Why to Remove Your Personal Information from Google & Data Broker Sites (Part 1)

LinkedIn as a Privacy Risk

Enhance Your Privacy With a Secondary Address and Phone Number

Using Publicly Safe Data for Privacy Protection

Secondary Strategies

Even after you get a hold of your online data, you’re still not out of the woods. You’ll need to stay vigilant and one step ahead of the scams.

1. Verify

Whether it’s a Facebook message from a friend or a call from a family member, always verify their identity through another channel. Don’t rely on what you see or hear on social media or in a video call alone.

2. Ask Unexpected Questions

In situations where you’re unsure, ask questions that only the real person would know how to answer. This is a variation of using a safe word, similar to what alarm companies do. AI may not be able to generate accurate responses for highly personal or specific questions. More on this in the next section below.

3. Talk to Your Loved Ones

Especially when it comes to grandparent scams, make sure your elderly relatives are aware of these schemes. Encourage them to double-check any requests for money by contacting other family members or local authorities.

4. Stay Skeptical

If someone claims to be in urgent need of money, whether it’s through social media or a phone call, don’t immediately trust the story. Scammers often rely on creating a sense of urgency to push people into quick decisions.

5. Educate Yourself on AI

The more you understand about the capabilities of AI, the better equipped you’ll be to spot these types of scams. Scammers are getting smarter, but you can stay one step ahead by reading our weekly newsletter and monthly news roundups.

Stumping the AI

Below are a few sample personal or unexpected questions that AI might struggle to generate convincing responses. Tailor these to fit the person you think you’re talking to or come up with completely new ones. Try to have general questions ready to offset the pressure that scammers will apply to force you into making a bad decision.

1. "What was the nickname you gave me when we were kids?"
   (This relies on personal history and inside jokes.)

2. "What’s the last meal we cooked together, and how did it turn out?"
   (Asking about a shared experience, especially something mundane, could trip up AI.)

3. "Where did we go on our last spontaneous trip, and what unusual thing happened?"
   (Focusing on unique, unscripted events makes it harder for AI to respond accurately.)

4. "What gift did I give you for your last birthday?"
   (Gifts are often specific and personal, making this a tough question for AI.)

5. "What’s the name of my first pet?"
   (This is a common security question but would still be difficult for AI without context.)

6. "When was the last time you came over, and what did we talk about?"
   (A specific conversation topic from a personal visit could stump AI.)

7. "What song did we sing together at your wedding?"
   (This involves a highly specific and emotional moment that AI wouldn't know.)

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Wrap Up

These situations highlight a larger problem in the realm of online privacy and security. AI tools are rapidly evolving, and while this technology can be used for good, it also opens new doors for Bad Actors. Hackers no longer need to rely on primitive phishing techniques—they can now convincingly mimic someone you know and trust.

With just a minute of audio or video, hackers can create an AI version of you, capable of fooling even the most cautious friend or family member. Seniors are at heightened risk and need particular oversight from family.  As these tools improve, detecting scams like this becomes increasingly difficult, especially when even a video call can be faked.

By continuing to read our newsletter, you’ll learn how to safeguard yourself from the latest AI-driven threats. We will help you and your loved ones become a harder target for scammers, ensuring you stay ahead of the masses and even your peers in this fast-moving space.

Thank you for your continued support and trust in us. 🙏

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Disclaimer: None of the above is to be deemed legal advice of any kind. These are *opinions* written by a privacy attorney with 15+ years of working for, with and against Big Tech and Big Data. And this post is for informational purposes only and is not intended for use in furtherance of any unlawful activity.

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