Jakarta, CNBC Indonesia – Many senior citizens in the United States (US) are victims of AI fraud. These parents even suffered losses of US$1.6 billion (Rp. 24.6 trillion) due to this fraud throughout 2022.
According to the Federal Trade Commission (FTC), many scams utilize AI technology to clone the voices of people known to the victim.
Senator Elizabeth Warren said the total loss figure was an underestimate, “because it does not take into account the number of victims who do not report fraud because they feel embarrassed.”
The rise in fraud using AI technology is due to loose policies governing the application of this technology. This fraud case prompted US lawmakers to speed up the passage of laws regulating AI and other advanced technologies.
“Every consumer, no matter their age, gender or background, can fall victim to this very convincing scam. The stories we heard today from individuals across the country are heartbreaking,” he said, quoted from Fox News, Tuesday (21/11/2023).
“As a parent and grandparent, I understand the fear and worry these victims feel,” he added.
The top 10 fraud categories shared during the committee hearing were impersonation and financial fraud, robocalls, computer fraud, catfishing on dating apps, identity theft and others.
The most prominent scam using AI technology involves imitating the voice of a person who then calls the victim, family member or loved one to ask for money.
Several testimonies in the trial stated that they received calls that sounded exactly like their loved ones were in danger, injured, or being held hostage.
One set of grandparents shown in video testimony at the trial received a phone call from the person they thought was their daughter. He sounded distressed and asked for help.
“My daughter was crying on the phone, sobbing and saying, ‘mom, mom, mom,’ and of course my wife said, ‘LeAnn, LeAnn, what’s wrong?’, and she repeated it again, ‘mom, mom, mom’ and he sounded exactly like him,” said Terry Holtzapple, one of the victims.
Gary Schildhorn, a Philadelphia-based attorney and another victim of the AI voice cloning scam, also testified at the trial. He almost sent US$9,000 to the scammer until he confirmed to his daughter-in-law that it was an extortion attempt.
The con man posing as a lawyer called Schildhorn asking for funds to bail his son out of prison for causing a car accident and failing a breathalyzer test.
Tahir Ekin, PhD, director of the Texas State Center for Analytics and Data Science, who was present at the hearing, testified that this deliberate impersonation strategy would create their trustworthiness and emotional appeal.
“Prioritizing increasing data and AI literacy among older Americans, and actively engaging them in prevention and detection efforts, is critical,” he said.
[Gambas:Video CNBC]
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