Senate Aging Committee tackles AI generated scams

Published in RINewsToday on January 8, 2024

Over two months ago, U.S. Senate Special Committee on Aging Chairman, Bob Casey (D-PA), put the spotlight on Artificial Intelligence (AI) driven fraud and scams. During the Nov. 16 hearing held in SD-106, “Modern Scams: How Scammers Are Using Artificial Intelligence & How We Can Fight Back,” the Senate panel highlighted the most common scams targeting seniors in 2023 with a focus on how scammers are using AI to create voice-clones and deep fakes to deploy scams and convince targets of their veracity. The hearing also explored how AI is being used to enhance fraud detection technology.

During the Senate panel hearing, lasting one hour and a half, Chairman Casey announced the Senate Aging Committee’s release of its annual Fraud Book, and brochure on AI-powered  scams and a bookmark featuring tips to avoid scams. Chairman Casey also noted he would approach the Federal Trade Commission (FTC) to request information about the agency’s work to track the use of AI scams targeted to older Americans.  On Dec. 5, Casey sent a letter to the FTC urging the agency to track AI scams.

Senate Panel Takes a Look at AI’s Good and Bad

“Today, we heard disturbing testimony about scammers using artificial intelligence to make their ploys more life-like and convincing,” said Chairman Casey in his opening remarks. “Any consumer, no matter their age, gender, or background, can fall victim  to these ultra-convincing scams, and the stories we heard today from individuals across the country are heartbreaking. As a parent and grandparent, I relate to the fear and concern these victims must feel. Federal action is needed to put up guardrails to protect consumers from AI—while also empowering those that can use it for good,” he said.

At the Senate Panel hearing, Ranking Member Mike Braun of Indiana warned that an increasing number of sophisticated fraudsters are carrying out AI attacks on seniors by utilizing voice-cloning and deepfakes to create images nearly identical to a real-live  person to dupe consumers into giving away valuable information and money.

“In context of frauds and scams, AI can be leverage negatively – but it can also be part of the solution,” says Braun.

According to Braun, the private sector has used AI and machine learning since the 1990s to combat fraud.  He called on the federal government to embrace similar technology by testing promising solutions to systems that suffer the most fraud, like Medicare.

Gary Schildhorn, a Philadelphia attorney told the Senate panel about his story of an attempted scam against him where his son’s voice was cloned by AI.  When he received a call that sounded like his son Brett, saying he had been in a car accident and needed $9,000 to post bail, he almost fell for the scam.

“There was no doubt in my mind that it was his voice on the phone—it was the exact cadence with which he speaks.  I sat motionless in my car just trying to process these events. How did they get my son’s voice? The only conclusion I can come up with is that they used artificial intelligence, or AI, to clone his voice…it is manifestly apparent that this technology… provide a risk-less avenue for fraudsters to prey on us,” says Schildhorn.

In his testimony, Steve Weisman, an Amherst attorney with Margolis, Bloom & D’Agostino who teaches white-collar crime at Bentley College in Waltham, pointed to the Federal Trade Commission’s Consumer Sentinel report for 2022, revealing that seniors reported more than $1.6 billion in losses to frauds and scams. But the actual amount could be as high as $48.4 billion, he says, because many were afraid to report losing money due to embarrassment or sham.

Seniors Tempting Target to AI Scammers

Seniors are the target of scammers because “that is where the money is,” notes Weisman, because they may have a “life time of accumulated savings that make them a tempting target for scammers.”

According to Weisman, AI has created additional opportunities for phone call scams,  because it can be used to remove foreign accents from scammers voices, making them appear more reliable.  AI created Robocall scripts can enable conversations with the scammer’s targeted victims, too.  Finally, AI cloning technology can make the targeted victim below they are talking to a loved one.

Weisman says that AI can be used by scammers to set up social media bots that appear to come from “real” people.  This allows them to create large numbers of believable bots to promote numerous scams, particularly involving cryptocurrency.

Scammers are now using AI technology more effectively in romance and family emergency scams, too, warns Weisman. 

AI can create fake profiles on multiple dating platforms, writing a grammatically correct biography, making it easier for scammers in foreign countries who are not familiar with speaking English. AI can also create photos or deepfakes for the profile, he says.

Weisman told the panel that AI generating software can create an audio voice that sounds exactly like that of the grandchild, using as little as 30 seconds worth of the grandchild’s voice.

Seeking a Balanced Approach

“The interplay of AI and scams brings forth both challenges and opportunities. Striking a careful balance between fostering AI innovations and protecting vulnerable populations is paramount,” says Dr. Tahir Ekin, of the San Marcus, Texas -based McCoy College of Business.

“In the fight against AI driven scams, awareness and AI literacy are crucial weapons,” says Ekin. “Existing efforts that educate seniors on safe digital practices, such as the work FTC Federal Advisory Council and the “Pass It On” campaign, can be enhanced to include AI related scams,” he says.

Tom Romanoff, Director, Technology at the Washington, DC-based Bipartisan Policy Center, stated, “As the good of this technology is being explored, we must acknowledge AI’s risks and seek a balanced approach, focusing on curtailing abuse while promoting positive uses and innovations.”

“As I stated in the beginning, we must tackle the abuse while driving toward positive application to safeguard its adoption,” says Romanoff.

To view the Senate Aging hearing, held on Nov. 16, go to: https://www.youtube.com/watch?v=7CMhzgQdz_I.

For a copy of Fighting Fraud: Top Scams in 2022,  go to https://www.aging.senate.gov/imo/media/doc/fraud_book_2023__english.pdf

AARP Report: Scammers targeting military community

Published on November 15, 2021 in RINewsToday

Just two days before the nation celebrated Veterans Day, the Washington, DC-based AARP issued a report revealing that veterans, active-duty service members, and their families are nearly 40% more likely to lose money to con-artists than the civilian population. According to the new research study, detailed in a 26-page report, 4 out of 5 military/veteran adults were targeted by scams directly related to their military service or the benefits they receive.

Fraud cost veterans, service members and their families more than $338 million in the five years ending in 2019, notes AARP citing Federal Trade Commission (FTC)  data. The median loss for military scam victims in 2019, $894, was nearly triple that for the population at large.

“Our research shows scammers are taking aim at the veteran and military community at alarming rates, emphasizing the importance of staying up-to-date on the latest scams and how to avoid them,” said Troy Broussard, Senior Advisor, AARP Veterans and Military Families Initiative. In a Nov. 9 statement announcing the survey’s findings.“ Knowing the red flags can not only help veterans, military and their families avoid losing money, but also avoid the emotional toll from scams,” he said.

AARP’s report, “Scambush: Military Battle Surprise Attacks from Scams & Fraud,” prepared by Jennifer Sauer, AARP Research and Pete Jeffries, AARP Veterans and Military Family Initiative, noted that scammers will use military jargon and specific government guidelines to craft an effective scam pitch to steal money from military members and veterans. One in three military/veteran adults reported losing money to these types of service-related scams.

Many military/veterans survey respondents fell for the Benefit Buyout scam by turning over U.S. Department of Veterans Affairs pension and/or disability benefits for a supposed lump-sum payment that never materializes (47%). Thirty-two percent admitted they were scammed out of money by paying for updated personal medical records, a service provided for free (Fraudulent records scam). Finally, 32% reported that they donated to fake veteran charities.

According to the AARP report, military/veteran adults also reported losing more money than civilians on the grandparent-impostor scam (more than twice as often) and financial phishing schemes (nearly twice as often). Nearly half of military/veteran adults said they are not using a robocall blocking service and over 1 in 4 have not registered their phone numbers on the National Do Not Call Registry. Finally, 81% of military/veteran adults have not placed a security freeze on their credit report.

Fight Back Against Scams

The U.S. Department of Veterans Affairs (VA) and Federal Trade Commission (FTC) provides helpful tips here: https://www.aarp.org/money/scams-fraud/info-2019/veterans.html?intcmp=AE-FWN-LIB4-POS16 to protect yourself against con artists who call you about your government and service benefits.

Unsolicited calls offering you an increase in your military benefits or access to little-know government programs are likely scams.

Never pay for copies of your military records. These documents are free.

You can confirm if a VA phone call is legitimate by calling the agency directly at 1-800-MYVA411.

Hang up if you receive an unsolicited call from a VA representative asks you for personal information like your Social Security number. Personal data is NEVER requested by either phone or email.

Be cautious on returning calls displayed on your caller ID. Scammers can use technology to change the telephone number, called ID spoofing, to make a call appear it came from a different person or place, or even from someone you know.

VA does not threaten claimants with jail or lawsuits.  If the caller does this, it’s a scam.

When you have a benefits issue, contact a VA-accredited representative. The VA maintains a searchable database of attorneys, claims agents and veterans service organizations.

Take Advantage of These Resources…

AARP’s Fraud Watch Network recommends also recommends the signing up for the National Do Not Call Registry and using a call-blocking service. Additional measures include: using strong and unique passwords for each online account; using two-factor authentication when available; and placing a free security freeze on credit reports at each of the three major credit bureaus. Remember, veterans never have to pay for their service records or earned benefits—if told otherwise, it’s a scam.
 
Operation Protect Veterans—a joint program of the AARP Fraud Watch Network and the U.S. Postal Inspection Service—helps veterans, service members and their families to protect against fraud. The Fraud Watch Network also offers biweekly fraud alerts and a free Helpline (877-908-3360) through which veterans, military and the public can report suspected scams. The AARP Watchdog Alert Handbook: Veterans’ Edition explains 10 ways that con artists target veterans.

AARP’s survey was administered in August 2021 to a total of 1,660 people: 851 active or former U.S. military respondents and 809 non-military (civilian) adults ages 18 and older using NORC’s AmeriSpeak Internet Panel. The margin of error is 4.40% at the 90% confidence level.

To get a copy of  “Scambush: Military Battle Surprise Attacks from Scams & Fraud,” go to https://www.aarp.org/content/dam/aarp/research/surveys_statisti.cs/econ/2021/fraud-scams-military-veterans-report.doi.10.26419-2Fres.00502.001.pdf

For more information and resources for veterans on the latest fraud and scams, visit aarp.org/veterans

AARP Town Hall Gives Its Best to Educate Seniors on COVID-19

Published in the Woonsocket Call on April 5, 2020

With more than 278 Americans now infected with the Coronavirus virus (COVID-19) and at least 7,159 people dying from the deadly virus, according to an April 3 blog article the New York Times, “about 311 million people in at least 41 states, three counties, eight cities, the District of Columbia and Puerto Rico are being urged to stay home.” The Washington, DC-based AARP continues to intensify its efforts to educate seniors about COVID-19 by hosting weekly Coronavirus Information Tele-Town Hall events.

At AARP’s second Coronavirus Information Tele-Town Hall event, held Thursday, March 19, during the 90 minute live event, federal health experts gathered to answer questions about the latest changes to address the health impacts of COVID-19, family caregiving needs, and to give tips on how seniors can stay safe from scams and frauds. AARP’s Vice President Bill Walsh served a host and the panel of experts featured Dr. Jay Butler, M.D., the deputy director for infectious diseases at the Centers for Disease Control and Prevention, (CDC), Lance Robertson, the assistant secretary for aging and administrator of the Administration for Community Living (ACL) and Daniel Kaufman, the deputy director for the Federal Trade Commission’s Bureau of Consumer Protection. AARP’s Jean Setzfand. AARP’s senior vice president served as moderator.

CDC’s Butler called for the public to stay informed and take the coronavirus virus seriously. “As we’ve learned more about COVID-19, it’s very clear that most people who become infected do recover and do very well. But unfortunately, some get very sick. And some even die. And the risk of more severe illness is greatest for those who are older and for persons with underlying health conditions, especially chronic heart, lung or kidney disease, and those with diabetes,” he says.

Juggling Costs and Benefits While Promoting Social Distancing

According to Butler, grocery stores are juggling costs and benefits with promoting social distancing by designating special hours for seniors to shop if they don’t have someone who can make “that run to the grocery store or have delivery services available.”

“We’re at the end of flu season so if you develop symptoms (cough, muscle aches, headache, and temperature) it doesn’t mean that you have COVID-19, says Butler. For those concern, it is important to talk with your health care provider who will determine whether or not you should be evaluated and whether or not a test may be necessary, he adds, noting that COVID-19 testing is now covered by Medicare Part B when it’s ordered by a health care provider.

“Of course, if you suddenly become very ill—and that would be things like shortness of breath, chest pain, difficulty in getting your breath at all or noticing that your face or your lips are turning blue—that’s when you call 911, and get in as quickly as possible,” says Butler.

Butler notes that the primary transmission of the COVID-19 virus (as well as the six other coronaviruses that were previously known to cause disease in humans), is respiratory droplets.

By coughing or sneezing you produce droplets that contain the virus that can spread as far as five or six feet away from you, he says stressing that this is why social-distancing can protect you from catching the virus.

Many express concerns that COVID-19 can be picked up by handling letters and packages. But, says that the likelihood of transmission of is extremely low. So, consider sending a package a loved one in an assisted living facility or nursing home because it can be meaningful, says Butler.

For those over age 75 to age 80, Butler recommends that these individuals practice social distancing by connecting with their children or grandchildren by phone video chat to being exposed to COVID-19.

Butler gave simple tips for residents of senior living complexes to protect themselves from COVID-19. When you come back into your apartment after taking out trash to the chute or dumpster, “wash your hands,” he says. “And that means about 20 seconds with soap and water.

It seems like a long time but it’s the same amount of time it usually takes getting through the alphabet or to sing Happy Birthday twice,” adds Butler. Or just use a hand sanitizer with at least 60 percent alcohol as an alternative to hand washing.

ACL Administrator Robertson provided tips to unpaid caregivers who cannot visit their loved ones in nursing homes due to the necessary visiting restrictions. He says, get the facility’s up-to-date contact information along with details as to ways as how to make virtual visits, video chats and regular phone calls. He says, don’t forget to send cards and notes, not only to your loved one, but to other residents even to staff to say thank you.

Communicating with Your Loved Ones

Enhance your verbal communication by asking the facility staff to schedule the time for your call. “If your mom is most alert in the morning, pick a morning time, think about what music they might like and play that in the background or sing along or sing directly to your loved one,” recommends Robertson.

Robertson notes, “If you find the conversation struggling a bit, maybe play a game of trivia, reminisce, work on a crossword puzzle together, sing songs, read poetry or other materials.

Watch a TV show at the same time and just discuss. Again, throw in some creativity and you can help prevent both boredom and isolation.”

For those more technically savvy, face-to-face interaction through FaceTime, Messenger, Facebook, Zoom, can enhance your contact, says, Robertson.

Adds Robertson, make sure you ask the facility staff to keep the scheduled time of the care conference, holding it over the phone. “We know they’re busy, but it’s imperative that you remain linked as a caregiver,” he says.

For those caregivers seeking resources to take care of their loved one at home, call ACL’s Eldercare Locator, recommends Robertson. It’s toll-free 1-800-677-1116.

During this COVID-19 emergency FTC’s Daniel Kaufman warned that you will see “unscrupulous marketers” trying to take advantage of senior’s fears by selling them bogus treatments. In early March, he told the listeners that the FTC and the U.S. Food and Drug Administration (FDA) sent out warning letters to seven companies that were claiming products (such as cheese, essential oils and colloidal silver) could treat or prevent the coronavirus. He quipped, these companies are not making these claims anymore and urged seniors to report any scams they come across by going to ftc.gov/complaint.

Kaufman says that seniors can also go to ftc.gov/coronavirus or just go to ftc.gov to see a very prominent link for coronavirus scams. If you want to receive consumer alerts directly from the FTC, you can go to ftc.gov/subscribe.

Skyrocketing of COVID-19 Related Scams

According to Kaufman, FTC is seeing an increase in scams, from phishing emails, charity and stock scams, to robocalls selling cleaning supplies and masks.

“We are seeing a lot of bogus emails that are going out to consumers, that use headers about coronavirus to get people to open them. You know, these are fake emails that are purporting to come from legitimate and important organizations like the World Health Organization or the CDC,” says Kaufman. “Don’t click on links when you get those emails. Don’t open those emails. They will download viruses or be harmful to software onto your computer, or they will try to get your private information or credit card information,” he adds.

Watch out for charity scams, too, warns Kaufman. “You know, this is a difficult time and we all want to help. But we want to make sure we’re helping charities and not scammers who are pretending to be charities, he says, suggesting that you do your homework to protect your pocketbooks.

With COVID-19 spreading across the nation you are now seeing more robocalls touting products and services to protect you from being exposed to virus. “Just hang up. Keep in mind that anyone who’s robocalling you, if they’re trying to sell you a product, they’re already doing something that’s unlawful,” he says.

Kaufman also recommends that seniors use a credit card when purchasing products, whether it’s cleaning supplies or masks, on websites. “It’s pretty easy to set up a website that’s purporting to provide, to sell these kinds of products. And they’re taking consumers’ payment information but not delivering, he notes.

Finally, Kaufman urges seniors to watch out for watch out for fraudsters who are touting that a certain company’s stock that is certainly going to explode because they have products that can treat coronavirus. Don’t fall for this stock scam and buy this stock.

For the latest coronavirus news and advice, go to http://www.AARP.org/coronavirus.

To see transcript, go to http://www.aarp.org/health/conditions-treatments/info-2020/tele-town-hall-coronavirus-03-19.html.