Good morning! Today’s newsletter covers an alarming trend: AI Fraud Schemes

The Scary Reality of AI Scams 💰

AI is being weaponized to defraud unsuspecting victims of substantial sums of money. Recent cases have highlighted the sophistication of these AI-powered schemes, which often exploit the trust people place in public figures and celebrities.

In the past year, the United States alone incurred losses exceeding $12 billion due to fraud involving AI-generated content.

👉 This number is expected to reach $40 billion by 2027.

Here are the stories of two recent victims:

Ann Jensen, a resident of Salisbury, fell victim to an AI investment scheme that cost her more than $25,000. The fraudsters used deepfake technology to create a convincing video of Prime Minister Sir Keir Starmer promoting a cryptocurrency investment opportunity. Lured by the promise of significant returns, Ms. Jensen initially invested $250, which the scammers claimed had grown to over $3,000. They then persuaded her to take out a $25,000 loan to prove her financial liquidity, assuring her she would get the money back.

However, once the loan's cooling-off period expired, the fraudsters disappeared, leaving Ms. Jensen unable to contact them. Ms. Jensen's bank has determined that she is responsible for the loans, totaling almost $30,000 in debt. She has consented to repay this amount in installments over the next 27 years.

Des Healey, a kitchen fitter from Brighton, fell victim to an AI scam that used deepfakes to impersonate money-saving expert Martin Lewis and tech billionaire Elon Musk. It appeared as an advertisement on Facebook, promoting a non-existent bitcoin investment scheme.

Motivated by the prospect of easy earnings during a slow business period, Des invested $1,220 through an account set up by a man claiming extensive financial advisory experience. This promising start soon turned precarious as Des saw returns on his investment, or so he thought. To retrieve this amount and secure further promised profits, he invested his entire life savings of $6,100. As the scheme's demands grew, Des took out multiple loans amounting to $85,500 to meet the escalating investment requirements, hoping each time to recover his funds, only to spiral deeper into financial jeopardy.

The consequences of these schemes can be devastating. Victims are often left with substantial debts and damaged credit scores. As AI continues to advance, it is crucial for individuals to remain vigilant and skeptical of investment opportunities that seem too good to be true, especially those promoted by celebrity endorsements online.

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The Scoop 🍦

🛍️ AI Supercharges Black Friday 2024: Record-Breaking Online Sales
Black Friday 2024 saw unprecedented e-commerce growth, with AI playing a pivotal role in driving sales and enhancing the shopping experience. U.S. online spending reached a record $10.8 billion, up 10.2% from 2023. This surge was largely fueled by AI tools and chatbots, which led to an astounding 1,800% increase in retail website traffic compared to the previous year.

🇺🇸 AI-Generated Videos of Kamala Harris Spark Controversy
A series of AI-generated videos depicting Vice President Kamala Harris in unflattering scenarios has gone viral, causing a stir online. These fabricated clips show Harris engaging in various controversial activities, including smoking and drinking, coinciding with her recent concession speech following the 2024 election loss.

📲 Grok Goes Mobile
Elon Musk's AI company, xAI, is reportedly preparing to launch a standalone mobile app for its Grok AI chatbot. This move positions Grok to directly compete with established players like OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude in the mobile AI assistant market.

🇵🇱 Microsoft Launches Free AI Training for 1 Million 
Microsoft has announced an ambitious initiative to provide free AI training to one million people in Poland by the end of 2025. This program, delivered through online courses, aims to boost AI skills across the country and support Poland's growing digital economy.

🤖 State Laws Protect Kids Against AI-Generated Deepfakes
Fourteen states have enacted laws to protect children against AI-generated deepfakes and other sexually explicit content, with five more states set to implement similar legislation by early 2025. These laws primarily focus on criminalizing the creation, possession, and distribution of AI-generated child sexual abuse imagery. Some states, like California and South Dakota, have updated existing laws to explicitly include AI-generated content, making it a felony offense.

Thank you for starting your December with us! We hope to see you next week 👋

Zoe from Overclocked