The Modern Twist to Scamming: AI Phishing

Remember those ‘‘I’m leaving you $100 million’ emails from a Nigerian prince? 

Yeah, we all had a good laugh about the obvious scammy tone, riddled with spelling mistakes and grammatical errors. Or the “ILOVEYOU” email (read: virus) in the 2000s that spread like wildfire, wreaked havoc and cost billions. 

Back then, spotting a scam was not hard—bad grammar, strange requests, and obvious red flags made phishing attempts easy to avoid. But times have changed. 

Scammers have upgraded, and their newest weapon is AI (artificial intelligence).

With advancements in AI (especially since the launch of ChatGPT), scammers have now wielded tools and bots that can craft messages indistinguishable from those sent by your friends or colleagues. Plus AI can generate content that mimics human communication with alarming precision. And, do note, these texts can be not only persuasive (and perfect in grammar) but also hyper-targeted. 

All of this points toward only one thing–today you could be just one click away from falling into a phishing scam. And if you run a business in the financial services, gaming, crypto, or similar industries, your risk is 100X. So, protection against AI phishing is no longer a recommendation—it’s a necessity. 

In this blog, we scan through how traditional phishing attacks have changed with advancements in tech, new methods adopted by scammers, and how you can be vigilant against it. 

The rise of AI phishing 

Before we get into AI phishing, let’s understand what phishing actually means in layman’s terms. Phishing is basically a cyberattack where attackers impersonate trusted entities to trick individuals into revealing sensitive information, such as passwords, credit card numbers, or personal details. 

This can occur through various channels, including emails, phone calls, or even fake websites. The most common types of phishing include email phishing (mass-targeted emails), spear phishing (targeting specific individuals/organizations), whaling (targeting high-profile executives), and smishing/vishing (SMS and voice-based attacks). 

Now, AI phishing or phishing 2.0 uses machine learning to create highly personalized, convincing attacks. By analyzing social media activity and email habits, GenAI can generate personalized messages that feel authentic, making it harder than ever for people to recognize when they’re being scammed. 

Here are some interesting stats about phishing–

• There has been almost a 100% increase in phishing and scam activities since 2020 and since late 2022, there’s been a 1,265% surge in phishing emails (the same year AI went mainstream with ChatGPT)
• An average of 31,000 phishing attacks are launched every day
• Finance and insurance are the industries that were most hit by AI phishing (30% of all phishing attacks and a near 400% Y-o-Y increase)

These stats do not paint a pretty picture at all and the cause for worry only rises because scammers are not only using mainstream AI but also jail-breaking AI systems to create extensions such as WormGPT and FraudGPT, which are specifically designed for phishing purposes. For example, a phishing attack from these bots could target an employee of a specific company with an event or task that includes details that only a real boss would know, making the email seem legitimate.

Even large-scale companies and their employees are not safe from these phishing traps. Did you know that GoDaddy fell to a phishing scam in 2021 that exposed personal data and more of about 1.2 million users?! Or, Activision (creator of the Call of Duty games) was attacked by hackers through a phishing scam, when an employee clicked on a suspicious link, giving hackers access to all employee databases, personal information, and more. 

Want to learn more about phishing, and identity threats? Read our blog on identity spoofing here. 

AI phishing detection methods

By leveraging the same principles used in software vulnerability testing, AI and ML can detect phishing attacks before they cause harm, keeping users and organizations safe. How? Read below–

Machine Learning (ML) to detect phishing

1. Static Application Security Testing (SAST): In the same way that SAST tools scan source and binary codes, ML models can analyze email content, URLs, attachments, suspicious domain names, malicious links, or fraudulent language in phishing attempts. 

2. Anomaly detection: Much like anomaly detection in code, ML can be trained to spot deviations in normal communication patterns. Phishing attempts often stand out by using unexpected language, strange email addresses, or abnormal timing. ML models can learn what “normal” looks like for a specific user or organization and flag any deviations as potential phishing. 

3. Dynamic Application Security Testing (DAST): Similar to DAST, ML can interact with phishing emails or websites in real-time. By simulating user actions like clicking links or submitting information, ML algorithms can analyze the responses to detect potential phishing threats. This analysis helps identify phishing schemes that only reveal themselves when interacted with, such as fake login pages or redirects to malicious sites.

Phishing detection algorithms

The biggest companies on the planet agree that AI phishing is a real threat and have started developing phishing detection algorithms. Let’s take Visa for instance. Did you know Visa is currently leveraging AI detection algorithms to combat fraud, particularly enumeration attacks, which cost more than $1.1 billion annually?

Visa’s AI algorithm assigns real-time risk scores, identifying suspicious activities before approval. Processing 300 billion transactions a year, Visa’s AI checks each transaction and continuously adapts to emerging fraud patterns, scoring high-risk transactions to prevent approval. Over the past five years, Visa has invested $10 billion in this technology and has saved $40 billion in the process in just the last 2 years. 

How AI is used to prevent AI phishing

Ironically, your best bet against AI phishing is well, AI! 

Confused? Understand this–as scamming evolves with AI, so does the need to counter it with better technology. Human systems may not be able to counter advanced AI attacks and this is exactly where AI and ML can join hands. 

Let’s see how–

• AI-powered phishing shields

These are designed to monitor communications, flag suspicious activities, and stop phishing attempts in real time. These tools use machine learning algorithms to analyze incoming emails and links, detecting anomalies that may indicate phishing. For example, Google through TensorFlow (its open-source machine learning framework) integration in Gmail is blocking over 100 million phishing emails daily!

Financial services and healthcare industries have successfully adopted these tools, significantly reducing phishing-related breaches. 

• AI-based anti-phishing software

Leading anti-phishing software such as Proofpoint and Barracuda offer advanced features like real-time threat detection, URL scanning, and email filtering. These tools integrate seamlessly with existing security frameworks, such as firewalls and endpoint protection, providing multi-layered defenses. For instance, Proofpoint claims to check more than 250+ data points on every email using AI, LLMs, NLP, and more.

• AI phishing toolkits

Various toolkits are available for businesses to combat phishing effectively. Key features include DMARC (Domain-based Message Authentication, Reporting & Conformance), DKIM (DomainKeys Identified Mail), and SPF (Sender Policy Framework) configurations. These protocols enhance email security by verifying sender authenticity and reducing spoofing risks. 

Top companies like Microsoft and Google have successfully implemented these protocols to protect their users.

Preventing phishing with AI

So far, we have read in detail about AI phishing and the different algorithms to fight it. Now, here are some additional strategies you can implement in your business to shield from advanced phishing attempts–

Strategies for businesses

• AI for email security: Utilize advanced AI algorithms as mentioned above that analyze incoming emails for signs of phishing. These filters can assess not just the sender’s address but also the content and context of the message. 

• Digital hygiene practices: Encourage a culture of digital hygiene within your organization. This includes regularly updating passwords, using password managers, and enabling two-factor authentication (2FA) for all accounts.

• Layered security protocols: Adopt a multi-layered approach to security that includes AI-driven spam filters, advanced firewall configurations, and endpoint protection. Each layer adds complexity for potential attackers, making it harder for phishing attempts to succeed.

Besides all these strategies, it would be wise to partner with a fraud prevention solution like HyperVerge which is at the forefront of the battle against phishing. With its AI-powered fraud detection, comprehensive KYC and KYB processes, and unmatched passive liveness detection, HyperVerge is redefining security standards for businesses. By integrating its advanced tech, you can protect your business and teams from evolving threats while simplifying compliance.

Pro tip from HyperVerge: Train your employees to be always suspicious and vigilant. Conduct workshops outlining procedures for reporting suspicious emails, and investigating incidents. Plus, encourage your team to never click on any downloads or links even if they may seem legit sources until they can be verified.

• Future trends in AI phishing prevention

As cyber threats continue to evolve, so do our defenses against them. One trend on the horizon is the development of deep fake detection tools. These advanced technologies can analyze audio and video content to spot manipulations, thereby protecting against phishing attempts.

Additionally, our team at HyperVerge predicts that the future will see increased collaboration between AI systems and human analysts. These hybrid approaches will work by leveraging the speed and efficiency of AI and intuition and understanding of humans, resulting in more nuanced threat detection.

Emerging technologies like predictive analytics will also play a crucial role, allowing organizations to anticipate phishing attempts before they occur.

Conclusion 

Businesses must recognize that relying on traditional methods is no longer enough to combat this new wave of phishing. Proactive adoption of AI-powered defenses is crucial for staying ahead of attackers. 

HyperVerge can be your partner in this journey. Equip your team with HyperVerge’s advanced fraud prevention tools that stop phishing attempts in their tracks. 

Stay ahead of cyber threats with HyperVerge’s AI solutions that work smarter and faster than the attackers. To know more, click here. 

FAQs 

What is AI phishing?

AI phishing uses artificial intelligence to craft phishing messages that feel personal and realistic. Unlike old scams, these AI-driven attacks are harder to detect because they’re smarter and more targeted.

What is an AI cyber attack?

An AI cyber attack is when hackers use AI to launch more efficient and precise attacks. AI helps automate the process of breaching security systems on a large scale and exploiting vulnerabilities with minimal human input.

What are the four types of phishing?

The four types of phishing are email phishing (classic fake emails), spear phishing (targeted at specific people), smishing (via text messages), and vishing (voice phishing through phone calls) each targeting individuals in different ways but all with the intent to steal sensitive information.

How is AI making phishing attempts more sophisticated?

AI helps scammers create realistic messages that sound legit, learning from data to avoid obvious red flags like weird grammar. Further, it can mimic human behavior, and voice so well that you might not even realize it’s fake!