In a discussion about the escalating threats posed by artificial intelligence, Senator Ted Cruz, alongside victims Elliston Berry and her mother Anna McAdams, highlighted the increasing problem of AI-enabled cyber exploitation among minors. Meanwhile, Visa’s latest report brings attention to emerging scams affecting consumers and travelers, revealing new variations on traditional fraudulent methods.
Visa’s “State of Scams: Fall 2024 Biannual Threats Report” indicates a recent surge in physical theft, where criminals utilize stolen payment information to purchase gift cards or physical products for resale, or conduct money transfers. A new trend known as “digital pickpocketing” has become more prevalent, involving scammers who use mobile point-of-sale devices to initiate payment by secretly tapping them against a victim’s wallet, particularly in busy locations where the maneuver can go unnoticed.
Michael Jabbara, Senior Vice President and global head of fraud services at Visa, advises consumers to stay vigilant regarding their surroundings to prevent becoming victims of digital pickpocketing. He compares these criminals to traditional pickpockets, noting that they target individuals who are distracted, making tourists in congested areas a prime target.
The report also addresses the rise in one-time-password phishing scams, aiming to circumvent two-factor authentication protocols. Enhanced realism in these scams is partially attributed to the use of generative artificial intelligence, which aids scammers in crafting more convincing communications after conducting thorough recon on potential victims.
Additionally, scammers are exploiting the busy travel season, targeting individuals making travel plans through fraudulent websites that mimic those of major airlines. These sites lure consumers with attractive deals, leading them to make purchases and agree to additional charges for in-flight services, only for the scammer to sever contact afterward. In some instances, fraudsters impersonate airline officials, disseminating fake cancellation emails that trick victims into sharing payment details to supposedly rebook flights.
Jabbara emphasizes the importance of awareness in crowded settings, where diversion tactics are frequently used to steal belongings. He also suggests best practices for consumers, including setting up real-time purchase alerts to monitor transactions and detect any discrepancies promptly. Utilizing two-factor authentication and safeguarding any related codes as they would passwords are also recommended. Staying informed about the latest scams is crucial to preempt fraudulent activities.
If consumers identify something suspicious within their records, immediate contact with their financial institution is advised. Following a fraud report, changing passwords and ensuring two-factor authentication is correctly established are vital steps. In cases of theft, reporting to local law enforcement is necessary, Jabbara adds.
