AI-Fueled Cyber Frauds Cost SMEs Hundreds Thousands Dollars

Criminal gangs, particularly those operating from China, have exploited social engineering tactics to steal credit card information via deceptive texts about tolls and postal fees, making over $1 billion in purchases worldwide through an ingenious method involving Google and Apple Wallets. Artificial intelligence (AI) has further intensified cyber threats, enabling criminals to conduct sophisticated phishing, deepfake voice, and video scams, disproportionately affecting small and medium enterprises (SMEs) with costly breaches averaging $254,445. Additionally, malware like the Formbook infostealer, distributed mainly through malicious emails, remains a potent tool for cybercriminals to steal credentials and breach corporate networks, relying heavily on social engineering to trick users. Small businesses face mounting risks from both external cyberattacks and internal threats such as "Shadow AI," where unsanctioned AI tools increase vulnerability to data breaches. Efforts to combat these threats include workshops providing practical advice on protecting businesses from scams, identity theft, and the risks of malware, emphasizing the importance of employee vigilance alongside technological defenses. Meanwhile, synthetic identity theft, where scammers create fake identities by combining stolen data from multiple individuals, is projected to cause billions in losses and remains challenging to detect, underscoring the evolving nature of identity-related cybercrimes.