Are We Still Waiting for Criminals to use AI to Attack?

I think you know the answer to that: United Nations Office on Drugs and Crime has found multiple areas in the world where there is a confluence of criminal gangs with drug trafficking sales, online gambling, and cyber-enabled attacks. And guess what these criminal gangs into drugs, online gambling, and cyberattacks are using to make their attacks better? AI services of course, everyone is looking to see how these new tools can help in your current  job.

For one thing these are the gangs that created investment scams and the “pig butchering” phenomena(from document-TOC _Convergence  cyber-fraud and threat landscape of Transnational Organized Crime(TOC)):

“While the emergence of pig butchering has
dominated the narrative around this expansion of
global cyberfraud, it is just one of many techniques
utilized by criminal organizations operating from
the region.
Investment scams: More traditional investment
scams continue to extort victims by enticing them to
platforms trading virtual assets, foreign exchange,
precious metals and other commodities. By posting
sponsored content on social media platforms or
manipulating Search Engine Optimization (SEO) to
drive traffic to their website, groups will clone or
emulate legitimate websites and scatter positive
reviews across the web so that when potential
victims explore the platform they see positive
stories form satisfied users. Another common
approach is to draw people into chat groups where
one scammer promotes a fraudulent investment
product to the group and other members of the
group who are in on the scam play along, following
advice from the principal scammer to invest in
fictitious products. They report back to the group
about the profits they are making, enticing the
targets to ‘invest’, extracting funds until the victim
becomes suspicious or tries to cash out”

  These are bales of cash in case you can’t see it clearly (Thai money)  The Baht 100s are red with the King Bhumibol Adulyadej, along with the image of the Grand Palace.

What has happened is what I predicted a few years ago when writing my book “Too Late You’re Hacked” the criminals have increased their warchest (money in their bank accounts and are working ever so feverishly to create a bigger empire every year. So with this money they can build a more advanced scam, a more advanced program (they can build their own AI programs). It is not that hard, the programmers that are young and capable can take a stab at it, and with enough time and resources it can be done.

So this is now the end result of their efforts:

They are more sophisticated as they hire or train new programmers to attack us.

I set a question to Claude AI “What are new AI attacks by cyber criminal gangs that focus on small business? The AI also wants to note how to avoid the attacks…

1. AI-Powered Social Engineering
 
- Attackers use AI to create more convincing phishing emails by analyzing company communications
 
- Protection: Implement email authentication (SPF, DKIM, DMARC), train employees on spotting sophisticated phishing
 

 
2. Voice Cloning Attacks
 
- Scammers use AI to clone voices of business leaders for fraudulent requests
 
- Protection: Establish verification protocols for financial requests, require multiple approvals
 

 
3. AI-Enhanced Password Cracking
 
- Using machine learning to guess passwords based on common patterns
 
- Protection: Require strong passwords, implement MFA, use password managers
 

 
4. Deepfake Video Conferences
 
- Impersonating executives or clients in video calls
 
- Protection: Establish verification procedures, use secure meeting platforms
 

 
Protective measures for small businesses:
 
1. Regular security awareness training
 
2. Updated security software and firewalls
 
3. Data backups and recovery plans
 
4. Incident response procedures
 
5. Access control policies
 
-------------------------------------------------------

Then I asked Perplexity a more general question on how Cyber gangs make money with AI:

#### Overview of AI Utilization by Cyber Gangs
 

 
Cyber gangs, particularly those operating in Southeast Asia, are increasingly leveraging **artificial intelligence (AI)** to enhance their criminal activities, posing significant threats to small businesses. A recent report highlights the intersection of **online gaming, cyber attacks, and drug trafficking** within these criminal networks, showcasing a sophisticated approach to crime that utilizes modern technology.
 

 
#### Methods of Attack
 

 
1. **AI-Driven Scams**: Cybercriminals are employing **malware, generative AI, and deepfakes** to conduct scams more effectively. For instance, a notable case involved scammers using a deepfake video call to deceive an employee into transferring **$25.5 million** from a multinational company. This illustrates how AI can create convincing impersonations that facilitate fraud.
 

 
2. **Criminal Service Economy**: The rise of a **criminal service economy** has been noted, where tools like **Telegram and cryptocurrency** are utilized for communication and transactions, making it easier for gangs to coordinate and execute their operations. This environment allows for the rapid exchange of information and resources among criminals.
 

 
3. **Targeting Small Businesses**: Small businesses are particularly vulnerable as they often lack the robust cybersecurity measures that larger corporations have. The **FBI** has warned that cybercriminals are increasingly targeting these businesses, using AI to automate attacks and exploit weaknesses in their defenses.
 

 
4. **Expansion of Cyber Fraud**: The cyber fraud industry in Southeast Asia has expanded dramatically, with criminals adopting new technologies to enhance their operations. In 2023 alone, cyber scammers reportedly stole **$37 billion**, indicating the scale and impact of these AI-driven crimes.
 

 
#### Conclusion
 

 
The confluence of AI technology with traditional criminal activities such as drug trafficking and online gaming has created a complex landscape for cybercrime. Small businesses must remain vigilant and invest in cybersecurity measures to protect themselves from these evolving threats. The integration of AI into the tactics of cyber gangs not only increases the sophistication of their attacks but also poses a significant challenge for law enforcement and cybersecurity professionals.
 
 --------------------------------------------------------
Just to doublecheck with other AI searches, here is komo.ai search (same question of course) they included where the information comes from.

Cybercriminals increasingly leverage AI to enhance their attacks on small businesses, exploiting vulnerabilities and automating malicious activities. Here are some common methods of attack and corresponding defense strategies:

Attack Methods

  1. Automated Phishing: AI enables hackers to create highly convincing phishing emails that mimic legitimate communications, making it difficult for employees to discern real from fake 36.
  2. Malware Development: AI can generate sophisticated malware that adapts its code to evade detection by traditional antivirus software, increasing the likelihood of successful breaches 46.
  3. Password Cracking: AI algorithms can quickly guess passwords by analyzing patterns from previous data breaches, making it easier to gain unauthorized access to systems 34.
  4. Targeted Attacks: By analyzing large datasets, AI helps hackers identify specific vulnerabilities within a business, allowing for more precise and damaging attacks 38.
  5. Network Scanning: AI tools can scan networks for weaknesses, enabling attackers to exploit critical systems and determine optimal ransom amounts in ransomware scenarios 89.

Defense Strategies

Defense Strategy Description Source
Employee Training Regularly train employees on recognizing phishing attempts and secure password practices. 1
Advanced Security Software Implement AI-driven security solutions that can detect and respond to threats in real-time. 5
Regular Software Updates Keep all systems and software updated to protect against known vulnerabilities. 1
Data Encryption Encrypt sensitive data to protect it even if a breach occurs. 1
Access Controls Limit employee access to sensitive information and systems based on their roles. 1

By understanding these AI-driven attack methods and implementing robust defense strategies, small businesses can significantly enhance their cybersecurity posture.

Do you want a custom evaluation of your cyberdefense?
Contact us at fixvirus.com/our-services/.

Most of the images in this post are from the UNDOC (United Nations Office on Drugs and Crime)TOC document here is the first page image:

The main image with the Thai hackers around computers with a bunch of money on table is an image created from Gabby AI (it is obviously not a real image). I doubt the hackers would show us an operational image like that…

This is what hacker selfie looks like: