The impact of artificial intelligence on the growth of digital fraud in Brazil

Imagine receiving a perfect voice message from a celebrity asking for financial help for a social cause or finding a website identical to a renowned store offering unbeatable deals. These are just some of the sophisticated tactics that criminals are adopting through artificial intelligence (AI) to deceive millions of Brazilians daily.

According to a survey conducted on the BrandMonitor platform between March and May of this year, it was identified that 529 out of 628 tracked brands suffered domain attacks and in 405 cases, fake websites emerged applying scams. The 50 most impacted brands registered an average of 86 fake domains created within just 90 days. The technology that promises to transform the future is now being used to sophisticate frauds, creating a digital epidemic that puts consumers and companies on high alert.

One of the main reasons for the growth of AI-driven digital fraud is its versatility, with no limits to the sectors and uses that can adopt it. Despite the versatility of digital attacks, all follow common steps:

1. Data collection:Criminals obtain personal and financial data from consumers and businesses through breaches, phishing and malware.
2. AI Training:With the data collected, AI is trained to identify patterns of behavior and imitate human language convincingly.
3. Execution:AI automates the scam, creating fake profiles, sending personalized messages, and simulating online activities to trick victims.

According to the 2023 global survey on Omnichannel Digital Fraud Trends conducted by TransUnion, attempts at digital fraud have increased by 80% worldwide since 2019. When combined with AI, these frauds become even more sophisticated and convincing to users. In Brazil, the first half of 2024 recorded 800,000 scam attempts.

Examples of scams in Brazil

No Free MarketFor example, criminals create fake profiles with photos and positive reviews generated by bots, misleading buyers into making fraudulent transactions. Already in ride-hailing companies, such as theUberand99 Taxi, AI is used to simulate phantom trips, generating undue charges for customers and illicit profits for scammers.

Although the possibilities are varied, some formats of digital scams are more recognized by users, including:

1. Personalizing Phishing MessagesAI analyzes data about the victim, such as purchase history, interests, and online behavior, to create highly targeted messages. This customization makes it difficult to identify frauds, as the messages appear legitimate and relevant to the recipient;
2. Fake Virtual Assistants:Fake chatbots induce people to provide sensitive information, such as bank details or passwords. Artificial intelligence allows these assistants to respond naturally and adapt to users' questions, making them more convincing;
3. Deepfakes and voice manipulationAI is used to create deepfakes, which are fake videos or audios that appear authentic. This technology is a growing concern, especially in contexts like elections, where the spread of false information can have significant impacts. In February of this year, the Superior Electoral Court decided to restrict the use of AI in campaigns.

Information and education are essential for protection against digital fraud. Users need to be more aware of how these fraudsters operate so that they can have greater control over their decisions, thereby avoiding the scam and all the trouble that comes with it.

Furthermore, to better understand the scope of AI-driven digital frauds, it is crucial to analyze concrete cases that demonstrate the impacts of these practices. Some emblematic examples involving large companies in Brazil reveal how these organizations were targeted by sophisticated scams, exploiting vulnerabilities of both consumers and the brands themselves:

1. Free Market:Criminals use AI to create fake profiles with photos and positive reviews generated by bots, misleading buyers into transacting with non-existent sellers. Additionally, they use AI to create fake product ads, attracting buyers and collecting personal and financial data.
2. Vans:Criminals create fake websites selling Vans products at unrealistic discounts, using AI to personalize these sites and deceive consumers.
3. Fleury:Phishing scams using AI tricked Fleury Group employees, resulting in the leak of sensitive data.
4. ENEM 2024:A fake website imitating the Enem Participant Page led several users to pay the registration fee for the exam, estimated at 85 reais per person.
5. Starlink:SpaceX's satellite internet company, owned by Elon Musk, is constantly victimized by scams and fraud. In our daily monitoring ranking, we found 523 suspicious domains related to Starlink, 152 of which are active. About 44% of complaints about the company are related to fake websites.

AI is also a defense tool

Just as artificial intelligence can be used for scams, it is also a powerful ally in fighting them. It is essential to recognize the importance not only of possessing advanced technology but also of knowing how to apply it effectively through sophisticated pattern detection techniques and behavior analysis.

The digital fraud epidemic in Brazil, driven by artificial intelligence, is a growing challenge that requires constant attention and coordinated action among companies, the government, and consumers. Only with information, education, and the intelligent use of technology can we curb this wave of digital crime and protect our data and our future.