News from the South - Alabama News Feed

With AI at their disposal, financial scammers are on the rise

Published

2 weeks ago

April 20, 2025

Staff Editor

alabamareflector.com – Paige Gross – 2025-04-20 07:01:00

by Paige Gross, Alabama Reflector
April 20, 2025

It started with a seemingly routine reminder for Nancy Hall to update her Norton antivirus software.

The 69-year-old Philadelphia resident sat down at her laptop to file her taxes recently and was prompted to call a number that was said to be the software company’s customer support. She had been hacked, the message said.

“It said, ‘you must call Microsoft right away, or else, you’re in danger of losing everything,’” Hall said.

A man on the line claimed to be in talks with her bank, saying hackers managed to download child pornography to her computer and transfer $18,000 to Russian accounts overnight.

He told Hall he was transferring her to the fraud department at her bank, where she spoke to someone who knew details about her local branch. After verifying personal details, that person asked her to come in to make a cash withdrawal that she could then use to purchase cryptocurrency at a specific ATM.

The pair told her she was at threat of being arrested by Homeland Security for what was found on her laptop unless she obliged.

After a few stressful hours of trying to sort out the situation, something clicked, Hall said — a friend was scammed out of $800,000 in retirement savings last year after being persuaded to purchase cryptocurrency in an emergency. Hall hung up the phone, then blocked the number when it continually called her back.

Financial crimes, or scams like these, have always been around, experts say. But the rise of artificial intelligence, access to sensitive information on the dark web, and a lack of federal oversight for these crimes means it’s never been easier to be a scammer, security experts say.

“AI has made these things so believable,” said Melissa O’Leary, a Portland, Maine-based partner and chief strategy officer at cybersecurity firm Fortalice Solutions. “Sometimes you can’t tell, ‘is this legitimate or not?’”

Hall’s experience mirrors many of the thousands of well-established attempts at tech-enabled financial crimes currently underway in the U.S. Scammers often pose as trusted corporations, government departments or as someone a victim knows. Many companies that have been spoofed, like Norton, put out warnings about these scams.

They also use heightened emotional responses and a sense of urgency to get you to transfer money or release personal details, cybersecurity experts say.

“Now I look back on it, I’m like, ‘how was I so stupid to say stay on the line that long?’” Hall said. “But then I look at this girl I know, and they managed to get her to go all the way.”

The business of scamming

The Federal Trade Commission reported the overall loss Americans experienced via financial scams in the 2023-2024 fiscal year to be between $23.7 billion and $158.3 billion. The figures differ so much because so many losses go under or unreported, the FTC said in the report.

Matthew Radolec, D.C.-based vice president of Incident Response and Cloud Operations at data security firm Varonis, said he sees these phishing attempts in two parts; the scam is the technique being used to get access to money, and the actual crime itself is the loss of the money.

Because these crimes are digital, it’s hard to know who to report them to, or how to follow up. Many scammers also ask for cryptocurrency payments, or transfer them to crypto accounts shortly after the transaction.

“There’s no insurance for accidentally wiring someone $10,000,” Radolec said. “If you fall for a ruse, you fall for a ruse. It’s like a carnival trick, a sleight of hand. It’s a digital form of that.”

Kimberly Sutherland, the Alpharetta, Georgia-based vice president of fraud and identity at LexisNexis Risk Solutions, said they’ve seen a 20% year-over-year increase in digital fraud since 2021, affecting as much as 1.5% of all transactions, though many of those attempts are caught before they can go through.

A large part of their efforts are focused on monitoring new account openings and payments, as fraudsters want to either create a fraudulent account at the start, or they want to be able to intercept transactions as they’re happening, Sutherland said. They’ve also had to evolve their monitoring strategies, as over the last few years, there’s been a shift from laptop and desktop targeting to mobile attacks, she said.

A few decades ago, scammers were focused on getting enough information from a company or individual to pull off a fake transaction. But as data breaches have become more common, the personal data unearthed makes it easier to pose as someone a victim knows, or give them details to become trustworthy.

Sutherland said the concept of synthetic identities — carefully crafted digital profiles of someone who doesn’t actually exist — have also deepened criminal’s abilities to get access inside of a variety of institutions like banks, colleges and corporations.

“You don’t have to steal an identity of someone; why not create a brand new one?” Sutherland said. “It started with jokes like, ‘I can get a credit card in the name of my dog,’ and it became sophisticated fraud rings who could actually create identities and nurture them to be used by others.”

Individuals and companies are not the only ones at risk of financial scams — government institutions have reported an increase in financial crimes in recent years. In California, community colleges have reported at least $5 million in losses to AI-simulated students who applied for financial aid.

One of the most current, wide-spread scams are texts and alerts from toll payment agency E-ZPass, asking a user to pay an outstanding bill at the included link. Last year, E-ZPass said the FBI’s Internet Crime Complaint Center had received more than 2,000 complaints about the texts. Those who had filled out the included form should contact their banks, the company said.

It’s similar to a longstanding scam posing as UPS trying to deliver a package — it plays on our human nature of trust and curiosity, O’Leary said.

How AI is playing a role

AI has lowered the barrier for setting up a scam, O’Leary said. Those looking to lure someone to wire money or purchase cryptocurrency need some space on a server or in the cloud, and some sort of infrastructure to reach out to victims. Many programs that can be used to fake a persona, to send out mass text messages or phishing links are as easy as downloading an app.

“It’s almost a step by step for someone who wants to make a quick buck,” O’Leary said.

Large language models and AI chatbots can easily be prompted to sound like someone else, and give non-English speakers a much easier ability to communicate, O’Leary said.

Radolec has seen an uptick in AI bots being used to gain credentials to company databases or pay systems. Bots can hold legitimate conversations with a target to build rapport, and plant phishing scams to gain passwords in standard documents.

“The next thing you know, you can log in as me,” Radolec said.

From there, scammers can divert paychecks to offshore accounts, sell data on the dark web or plant further phishing attempts in internal systems.

Because of the rapid advancements in AI technologies, phishing attempts and scam strategies are constantly changing. Now, AI tools can help alter legitimate images, and create deepfakes, or likenesses of someone’s image or voice, in just a few minutes. It’s the strategy behind an increasingly common scam on grandparents — they get a call from someone that sounds exactly like their grandchild, saying they need a wire transfer or cash for bail.

Many digital scams target older people, both because they’re expected to have less technical knowledge to spot a ruse, and because they tend to have larger sums of money accessible, Radolec said. In its report, the FTC estimated between $7.1 billion and $61.5 billion in losses for older adults.

This week, AARP, Amazon, Google and Walmart partnered on a new initiative that will be based out of Pittsburgh, called the National Elder Fraud Coordination Center, an attempt to tap in private companies who have resources in data privacy to assist in national law enforcement investigations. Its founder and CEO, former FBI agent Brady Finta, said that the technical side of these crimes are often partnered with an emotional side, like pretending to be a family member in trouble.

“They’re talking you through the crime,” Finta said. “They’re adding this anxiety and thought process to you and to overcome your normal decision making processes.”

Legislation and enforcement

There are hundreds of thousands of victims of financial scams each year, and they’re reporting them to different places — local police, state organizations, federal agencies, and the tech platforms where the crimes occurred, Finta said. Part of the reason some financial scams go unreported is that there’s not one clear route, government agency or law enforcement agency that has ownership over them.

That was also the consensus of a new report by the Government Accountability Office, FedScoop reported this month. There are 13 federal agencies, including the FBI, CFPB and the FTC, that work to counter scams, but they do not share one overarching strategy.

Finta is hoping that leveraging the private sector data from their partner corporations can help connect some fraud cases across the country and make these investigations more comprehensive.

While the FTC has the Fraud and Scam Reduction Act, which aims to raise awareness of financial scams, there’s no official federal protection or legislation on this topic. Some states are passing consumer protection laws that put some liability on banks to do due diligence on fraud and even reimburse customers for fraudulent transactions.

And the U.S. may be facing less protections than it currently has. Susan Weinstock, CEO of the Consumer Federation of America, said she’s worried that Congress just voted on a resolution under the Congressional Review Act that removed the rule that required digital payment apps like Venmo and Apple Pay to be regulated for fraud.

“Years ago, nobody had heard of Venmo or CashApp, and now these things are ubiquitous,” Weinstock said. “So it puts consumers in a really tough, scary position to be subject to fraud and not have the ability to deal with it.”

Because the strategies behind these financial scams change often and because there are few ways to track these crimes after they happen, a lot of responsibility falls on individuals and institutions to be able to spot them. Radolec’s first piece of advice is to slow down. If it really is your grandson calling from jail? Is it the end of the world if he spends a night in jail, he said.

Adding another person into the loop of communication is another strategy that will usually knock off an impersonator. If it appears to be a higher-up at work making a strange request for access to your finances, there’s no harm in looping in another person to review, Radolec said.

Lastly, the cybersecurity experts all said, it’s always safer to get in contact with the original source. If someone on the phone says they’re with your bank, hang up and call the bank directly to verify information.

“A lot of times they’re trying to create a sense of urgency that’s from a false place, so how can we ground ourselves?” Radolec said. “And can we ask, is this truly like a life or death situation that you have to act on right now? Or can time be in our favor?”

Alabama Reflector is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com.

The post With AI at their disposal, financial scammers are on the rise appeared first on alabamareflector.com

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News from the South - Alabama News Feed

Alabama Legislature sends 2026 ETF, General Fund budgets to Gov. Kay Ivey

Published

18 hours ago

April 30, 2025

Staff Editor

alabamareflector.com – Alander Rocha – 2025-04-30 07:01:00

by Alander Rocha, Alabama Reflector
April 30, 2025

The Alabama Legislature Tuesday gave final approval to the state’s two budgets for the 2026 fiscal year, but not without a battle.

The Alabama Senate passed a $3.7 billion 2026 General Fund budget late Tuesday night on a 30-0 vote after an hours-long slowdown.

HB 186, sponsored by Rep. Rex Reynolds, R-Huntsville, would provide a 10% increase ($347 million) over the current budget for the 2026 fiscal year, which starts October 1.

“In many cases, you had a reduction in what your request had been. Everyone of us had that … so we’re in a dichotomy here where we have the largest budget we’ve ever had, and yet, we have the tightest constraints and control that we’ve had in recent memory,” said Sen. Greg Albritton, R-Atmore, who chairs the Senate Finance and Taxation General Fund Committee, pointing to Medicaid’s significant budget increase that will bring its budget to over $1 billion.

Sen. Rodger Smitherman, D-Birmingham, asked for the 125-page funding bill to be read in its entirety Tuesday afternoon, which delayed the vote by hours. He said after the Senate adjourned that he didn’t want controversial bills to be passed without deliberation, and that he was afraid the Senate would move to adopt a different set of bills to consider.

“[The House] did have a second calendar, and it was going to be the same thing here in terms of the desire to have a second calendar, and I thought that we need to just work on that particular calendar,” Smitherman said after the Senate adjourned.

GET THE MORNING HEADLINES.

The Alabama Medicaid Agency, which provides health insurance for over 1 million Alabamians, nearly all children, elderly citizens and those with disabilities, will get $1.179 billion from the state, a $223.8 million (19%) increase over this year. Ivey requested $1.184 billion in February, about $5 million more than what the House approved.

The Alabama Department of Corrections, which administers the state prisons, will get a $90.1 million increase (11%) to $826.7 million.

The Alabama Department of Human Resources, which provides child and adult protective services, enforces child support payments and administers food and family assistance, will get $148.9 million from the state in 2026, a $4.7 million (3%) increase from the current budget.

The Alabama Department of Mental Health, which provides mental health care services in the state, will get a $4.7 million increase (2%) to $244 million. The Legislature cut the funding from Ivey’s recommendation by $3.7 million.

But senators also appeared to want to send a message to the Alabama Board of Pardons and Paroles, which has drawn mounting criticism from Democratic and Republican senators over low parole rates and what senators consider a lack of responsiveness to their questions about the parole process. The Senate cut the board’s funding from $94.5 million to $90.6 million, a 4.1% decrease.

In addition, Sen. Clyde Chambliss, R-Prattville, added an amendment to make funding for the Board of Pardons & Paroles conditional on the board developing parole release guidelines. The amendment passed on a 27-0 vote.

“What they do, as y’all know, they adopt guidelines. Those are supposed to be updated and revised. They have not done that,” he said.

The board has faced backlash after parole rates declined significantly after 2017, when members granted parole to about 54% of applicants. The rates fell as low as 7% at times, according to an analysis by the ACLU of Alabama in 2023, but rebounded to slightly more than 20% within the past year.

The Senate also passed HB 185, also sponsored by Reynolds, which would appropriate $50 million in American Rescue Plan Act (ARPA) funds to the Department of Finance and provide over $12.6 million to the Unified Judicial System.

“This bill is supplemental monies just taking federal money and appropriating it,” Albritton said.

The House concurred with the changes late Tuesday evening, sending the bill to Gov. Kay Ivey.

The Senate also concurred with House changes to SB 112, sponsored by Sen. Arthur Orr, R-Decatur, a nearly $10 billion 2026 Education Trust Fund budget (ETF).

The House changes added $17.6 million to the budget, bringing it to a 6% increase over the 2025 ETF budget. The budget does not contain pay raises for teachers in the 2025-26 fiscal year, which starts Oct. 1. But it includes a $99.2 million increase for the Public Education Employees’ Health Insurance Plan, as well as funding for workman’s compensation for education employees and paid parental leave.

The Senate also concurred with the ETF supplemental funding bills, including SB 113, also sponsored by Orr, a $524 million 2025 supplemental appropriation for education that passed the House with an amendment changing language to clarify dual enrollment programs funding.

The Senate also concurred with House changes to SB 111, sponsored by Orr, which would appropriate $375 million over three years to implement changes to the state’s school funding formula.

The House added an additional $80 million from the Education Opportunity Reserve Fund to the Creating Hope and Opportunity for Our Students’ Education (CHOOSE) Act Fund, a voucher-like program that gives tax credits for non-public school spending, including private school tuition. The first-year cost estimate will go from $100 million to $180 million, an 80% increase. Over two-thirds of applicants to the program are already in private school or are homeschooled.

The story was updated at 10:30 a.m. to include comment from Sen. Rodger Smitherman, D-Birmingham, regarding the procedural delay.

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The post Alabama Legislature sends 2026 ETF, General Fund budgets to Gov. Kay Ivey appeared first on alabamareflector.com

Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

The content primarily reports on the legislative proceedings and budget approval in Alabama, focusing on the specifics of the Senate’s actions, including discussions and amendments. The tone is factual, without clear support or opposition to any political party or position. It details the actions of both Republican and Democratic senators, presenting them neutrally. The mention of funding allocations, including increases for Medicaid and the Department of Corrections, appears to be a straightforward report on the outcome of legislative decisions, without showing favor to any side. The coverage adheres to neutral, factual reporting rather than offering an ideological stance.

News from the South - Alabama News Feed

Bail reform bills moving through Alabama Legislature in final days of session

Published

1 day ago

April 29, 2025

Staff Editor

alabamareflector.com – Ralph Chapoco – 2025-04-29 07:01:00

by Ralph Chapoco, Alabama Reflector
April 29, 2025

Two bills that would change Alabama’s bail system are working their way through the Legislature in the waning days of the 2025 session.

The Senate Judiciary Committee hosted a public hearing Wednesday for HB 42, sponsored by Rep. Chris England, D-Tuscaloosa, which gives judges the authority to allow defendants to pay a portion of their total bond to be released from pretrial detention.

HB 410, sponsored by Rep. Shane Stringer, R-Citronelle, which was approved by the House Judiciary Committee, modifies the composition of the Alabama Professional Bail Bonding Board, expands the exemptions for the fees that bail bond companies must pay the court, increases penalties for bail jumping and adds more regulations for bail bond companies when they operate in another state.

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A message was sent to Stringer Monday seeking comment.

HB 42 has passed the House and is awaiting a vote in the Senate Judiciary Committee. The House is scheduled to vote on HB 410 on Tuesday. England’s bill adds three words, “a part of” back into an Alabama statute that were removed when the same Legislature enacted the Alabama Bail Reform Act of 1993.

The removal of the words meant judges in the state could not allow defendants to pay a percentage of their bond to get release from pretrial detention.

“What that translates into is a large amount of money that would normally go to the court system, instead of going to the court system, it goes to a bondsman,” England said to the committee Wednesday.

People can secure their release after an arrest if they pay a bail bond company. The premium, which is typically 10% of the total amount of the bond, is paid to the bail bond company, which then must ensure the individuals go to their court appearances.

The money that people pay when released on a percentage bond would be retained by the court and kept if defendants fail to appear for their court dates.

The Alabama Bail Bond Association has been a vocal opponent of the bill, speaking out against the legislation at a March public hearing and the House Judiciary Committee considered it then and eventually approved the bill a week later.

Victor Howard, vice president of the Alabama Bail Bond Association and bail bond company owner, said that enacting the legislation would reduce accountability for defendants to appear for their court dates.

Chris McNeil, the president of the Alabama Bail Bond Association, suggested Monday in an interview that the rates that people would not appear for court would increase. He also cited records from the Alabama Administrative Office of Courts saying that people who paid cash to be released from pretrial detention in 2022 and 2023 had a failure to appear (FTA) rate of 55%.

“The court just can’t function when you have a failure to appear rate of 55%,” McNeil said Monday. “The bonding companies were averaging about a 14%-15% failure to appear rate. And were able to trim that rate by returning defendants back to court.”

England told the committee that the numbers do not present a fair comparison to percentage bonds.

“The numbers are obviously going to be off because there are more people on smaller offenses with cash bonds versus somebody who is on a large bond with a bondsman,” England said to the committee on Wednesday. “Obviously, there is going to be a higher number of FTAs on smaller cases, traffic tickets, because they all count.”

Jerome Dees, policy director from the Southern Poverty Law Center, supported the legislation.

“The vast majority of times when there was an FTA that was ultimately secured, and the defendant showed up in court, it largely was due to law enforcement bringing that individual in and not the bail bond company,” he said to the committee on Wednesday. “That is not to say that it never happened, but the vast majority of time it was law enforcement bringing that particular individual in.”

McNeil said in an interview Monday he supports HB 410, Stringer’s bill.

“It expands the Alabama Professional Bail Bonding Board by adding a sheriff to the board, adding a layperson, so I think that is very important,” he said.

It also states that any fees that bail bond companies pay to the court that have not been deposited within 90 days and that have an expiration date “shall be deemed uncollected” and will no longer hold the bail bond company responsible for making the payment.

The bill also exempts bail bond companies from fees that the courts or district attorneys have not attempted to collect past one year from the original due date.

HB 410 also adds more conditions such that the bail bond company will not pay a fee, known as forfeiture, to the court when in cases that the defendant fails to appear in court.

McNeil said the bill would cancel that forfeiture payment if someone was not placed in the National Crime Information Center and failed to appear in court, or if the bail bond company brings back a defendant that the jail refuses to accept.

The bill also addresses instances when an individual travels out of state and enhances the penalty for bail jumping, going from a Class A misdemeanor to a Class D felony, punishable by up to 5 years in prison and a $7,500 fine.

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The post Bail reform bills moving through Alabama Legislature in final days of session appeared first on alabamareflector.com

Political Bias Rating: Center-Left

The content focuses on legislative efforts to reform Alabama’s bail system, highlighting a bill sponsored by a Democratic representative aimed at allowing partial bond payments to reduce the financial burden on defendants. It presents arguments from both supporters and opponents, including the bail bond industry’s concerns and civil rights advocacy perspectives. The article leans slightly left by emphasizing criminal justice reform and the perspective of proponents seeking to reduce penal system inequities, yet it maintains a generally balanced tone by including conservative viewpoints and the legislative process details.

News from the South - Alabama News Feed

7-Year-Old Calls 911, Helps Save Family Member's Life | April 28, 2025 | News 19 at 10 p.m.

Published

2 days ago

April 28, 2025

Staff Editor

www.youtube.com – WHNT News 19 – 2025-04-28 23:17:38

SUMMARY: Seven-year-old Maddux Kendrick from New Market showed remarkable bravery by calling 911 when his stepmom, Megan Douglas, who has epilepsy, suffered a seizure on New Year’s Day. While playing video games and watching TV, Maddux noticed Megan fell and was having a seizure. Calmly, he first called Megan’s mother and then 911, providing precise information and helping the operator monitor Megan’s breathing until EMTs arrived. His quick thinking likely saved her life, as she later had another seizure and might have suffered worse alone. Maddux received a Good Samaritan Award for his courage and presence of mind, making his family very proud.