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

Published

3 months 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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www.youtube.com – WVTM 13 News – 2025-07-18 08:09:43

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Alabama’s Back-to-School Sales Tax Holiday returns: Which items are eligible

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News from the South - Alabama News Feed

Democrats walk out on US Senate Judiciary vote on Trump judicial nominee Emil Bove

Published

1 day ago

July 17, 2025

Staff Editor

alabamareflector.com – Ashley Murray – 2025-07-17 12:55:00

by Ashley Murray, Alabama Reflector
July 17, 2025

WASHINGTON — Despite a walkout from Democrats, Senate Republicans tasked with vetting nominees to the federal bench on Thursday claimed to advance President Donald Trump’s former criminal defense attorney, Emil Bove, one step closer to a spot on the U.S. Appeals Court that handles cases in Delaware, New Jersey, Pennsylvania and the U.S. Virgin Islands.

A spokesperson for Republican Sen. Chuck Grassley, who chairs the Senate Committee on the Judiciary, told States Newsroom the panel approved Bove’s nomination in a 12-0 vote — that is, despite panel rules that state “at least two members of the minority” must be present to transact committee business. The Iowa Republican’s office did not immediately respond to a follow-up question about committee rules.

In a show of opposition, all Democratic members of the panel, with the exception of Democratic Sen. Cory Booker, stood up and left as Republicans on the panel cast “aye” votes to push Bove’s nomination to the full Senate.

Booker, of New Jersey, refused to stop speaking as Grassley called the vote.

“You are a decent man. Why are you doing this?” Booker protested.

In a post on social media following the meeting, Josh Sorbe, press secretary for the committee’s minority, wrote: “Shameful day in Senate Judiciary. Republicans broke numerous committee rules, ignored privileged motions, denied debate, and rushed through judicial nominees without real vetting. Sen. BOOKER admonished them for it, and Democrats denied quorum and walked out.”

Illinois Sen. Dick Durbin, the top Democrat on the panel, later issued a statement acknowledging the vote took place, but maintained Senate Republicans broke committee rules by ignoring Booker’s request for further debate and moving ahead with the vote.

“Chairman Grassley claimed that he was following Committee precedent. This is simply untrue,” Durbin said.

Questions about bribery charges, Jan. 6

Senate Democrats, former judges and advocates opposed Bove’s nomination over what they describe as unethical behavior, including questions about his role as a top Department of Justice official in the dismissal of federal bribery charges against New York City Mayor Eric Adams and in the firing of prosecutors who worked on cases probing the Jan. 6, 2021, storming of the U.S. Capitol.

Critics also pointed to recent whistleblower accusations that Bove suggested ignoring a federal court order limiting Trump’s mass deportation campaign.

Bove represented Trump in his multiple federal criminal cases in 2023 and 2024, as well as in a New York state trial that ended in Trump’s conviction on 34 felonies for falsifying business records.

Trump appointed Bove as acting attorney general on his first day in office, and Bove shifted to principal associate deputy upon Attorney General Pam Bondi’s confirmation.

Bove’s nomination to a lifetime appointment on the U.S. Court of Appeals for the 3rd Circuit has been overshadowed by a whistleblower’s account alleging Bove told subordinates to consider defying a federal court order halting Trump’s deportation flights to El Salvador in March.

Both Bove and acting Attorney General Todd Blanche, another of Trump’s former criminal defense attorneys, deny the allegations.

Grassley said Thursday prior to the vote that allegations against Bove “frankly crossed the line.”

“What we’re witnessing has all the hallmarks of a political hit job,” Grassley said.

Illinois’ Sen. Dick Durbin, the top Democrat on the panel, said in his opening statement Thursday that Bove “should not be seriously considered by the Senate for a lifetime appointment to the federal bench.”

“He led this administration’s embarrassing efforts to strike a corrupt bargain with New York City Mayor Eric Adams, and he has been trailed by a history of complaints, long predating his affiliation with President Trump, about his temperament, his poor judgment and lack of candor before the court,” Durbin said.

Whistleblower complaint

Durbin and fellow minority committee members requested the panel hear testimony from Erez Reuveni, a former senior DOJ official who filed a whistleblower complaint in which he alleged he was fired for refusing to follow department orders to undermine the courts in Trump’s deportation cases.

In the complaint submitted to the DOJ inspector general and Congress, Reuveni, who spent 15 years with the department, outlined “a pattern of deliberate defiance of federal court rulings related to immigration enforcement,” according to a summary from the Government Accountability Project and Gilbert Employment Law P.C., which filed the complaint on Reuveni’s behalf.

Lawmakers who viewed the complaint said Reuveni recounted witnessing Bove suggesting the DOJ might need to tell the courts “f— you” in relation to any order blocking the administration from sending planes full of deported migrants to El Salvador under the Alien Enemies Act.

“Mr. Reuveni has made credible allegations against Mr. Bove, which, if true, clearly disqualify him for a lifetime appointment to the federal bench. Thus, it is imperative that the Committee hear from Mr. Reuveni, under oath, before we vote on Mr. Bove’s nomination,” according to a letter Monday led by Durbin.

Grassley shut down the request Tuesday, writing in a response that documents provided by the minority to support the claim do not “substantiate any misconduct by Mr. Bove.”

“I respect whistleblowers and the whistleblowing process and have taken this matter seriously. I note that the available documents and the public record are inconsistent with some of the whistleblower’s assertions, which have been reviewed in good faith,” Grassley wrote.

Dozens of former judges protest nomination

More than 80 former federal and state judges described Bove’s nomination as a “disservice to the constitution, to law enforcement and to the rule of law” in a letter to Grassley and Durbin Tuesday.

The judges, including former 4th Circuit Judge Michael Luttig, a George H. W. Bush appointee who endorsed Vice President Kamala Harris last year, slammed Bove’s “egregious record of mistreating law enforcement officers, abusing power, and disregarding the law itself,” adding that the allegations disqualify him for the position.

The letter cited Bove’s alleged role in firing Federal Bureau of Investigation agents and DOJ officials who prosecuted those involved in storming the U.S. Capitol on Jan. 6, 2021. Trump pardoned all of the nearly 1,600 Jan. 6 defendants on the first night of his second term, including the most violent convicted felons.

The former judges also called Trump’s nomination of his personal defense attorney to a federal judgeship “deeply inappropriate.”

“In fact, when President Trump nominated Bove, he posted on social media that Bove would ‘do anything else that is necessary to, MAKE AMERICA GREAT AGAIN.’ That statement underscores the peril of confirming a nominee whose principal qualification appears to be personal loyalty to the president,” the former judges wrote.

Lena Zwarensteyn, senior director of the fair courts program at The Leadership Conference on Civil and Human Rights, said the list of concerns over Bove’s nomination “goes on and on and on.”

“I think when it comes down to it, you know, in a lifetime position that requires good judgment, wise discretion, good temperament and the dedication to the rights of all, Mr. Bove fails on every single one of those accounts,” Zwarensteyn told States Newsroom in an interview Wednesday.

GOP Sen. Thom Tillis of North Carolina, who announced his retirement after breaking ranks earlier this month on Trump’s budget reconciliation package, said Thursday he found nothing to prove Bove expressed support for Jan. 6 defendants — something that would have been a “red line,” he said.

“The fact of the matter is, I can’t find one piece of evidence where he said that the violent act against police officers were okay or condoned. If you find it, let me know,” Tillis said.

Bove, of Seneca Falls, New York, graduated from Georgetown University Law in Washington, D.C., in 2008. He clerked for Judge Richard J. Sullivan of the Southern District of New York, and Judge Richard C. Wesley, who now sits on the U.S. Court of Appeals for the 2nd Circuit.

Bove, 44, worked as a federal prosecutor in the U.S. attorney’s office for the Southern District of New York, and in 2023 became a partner at Blanche Law, the private firm of Todd Blanche.

Tense confirmation hearing

Democratic senators, and in some cases Republicans, peppered Bove with questions and concerns about the numerous misconduct allegations during the Judiciary Committee’s June 25 confirmation hearing.

Booker said he remained worried about a “pattern of behavior” first reported by Politico in February regarding complaints about Bove’s temper from former colleagues in the U.S. attorney’s office for the Southern District of New York.

“The allegations align with reports about your abuse of power now at the DOJ,” Booker said.

Sen. John Kennedy, a Louisiana Republican, pressed Bove on why the DOJ dismissed the federal corruption case against the New York mayor, who was charged with accepting illegal campaign contributions and luxury travel in exchange for favors.

The Trump administration moved to dismiss the Adams case in February, arguing the case interfered with the mayor’s ability to carry out immigration enforcement in the city. The administration requested a dismissal without prejudice — meaning Adams could be prosecuted again — but a federal judge ultimately dismissed the case in April with prejudice, citing concerns the White House would have leverage over Adams’ policy decisions.

“Do you believe in a higher being?” Kennedy asked Bove.

“It’s a very personal question, Senator, but I do,” Bove responded.

“I want you to look me in the eye and swear to your higher being when you answer this question, did you make a deal, a political deal, and dismiss the charges against Mayor Adams?” Kennedy said.

“Absolutely not,” Bove answered.

The post Democrats walk out on US Senate Judiciary vote on Trump judicial nominee Emil Bove 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: Center-Left

This article presents the nomination of Emil Bove with a critical tone largely aligned with Democratic perspectives and concerns. It emphasizes allegations of misconduct, ethical questions, and opposition from Democrats and former judges, while providing Republican statements primarily as counterpoints or defenses. The framing highlights criticism of the nominee’s ties to former President Trump and portrays Senate Republicans as pushing the nomination amid procedural disputes. Although the article reports statements from both sides, the overall emphasis on Democratic objections and allegations suggests a center-left leaning in coverage, reflecting skepticism toward the nominee and the Republican-led process.