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Fraud isn’t new, but the ways it’s carried out are, and they’re always changing. FCT has been at the forefront of real estate fraud prevention for over 20 years. We’ve seen the alarming rise in title fraud first-hand, but as fraudsters advance and adapt, so do we.
Generative AI is a powerful new tool for fraudsters
AI is making it even easier for fraudsters to impersonate their targets. This is a serious concern, especially for legal professionals who might think a transaction is safe if they’re meeting clients in person for the first time, with physical ID documents. Here’s how AI is changing the game for fraudsters:
Legitimate-seeming emails and communications
AI can quickly write emails and other communications that look real and appear to come from a trusted organization. These writing tools also let fraudsters easily adopt their tone and word use to each organization they’re pretending to be.
Phishing emails like this can trick people into sharing sensitive information, which fraudsters can then use to impersonate them. It’s a tactic fraudsters have used ever since there’s been email, but AI raises the threat by increasing the quality and decreasing the production time.
Voice and appearance manipulation
Where AI writing tools have enhanced the existing tactic of phishing emails, generative video and audio AI tools have opened up an entirely new fraud tactic: real-time impersonation.
AI can alter a fraudsters’ voice to sound more like the person they’re impersonating, and it can even alter their appearance on video calls. This makes it very difficult to tell if the person you’re talking to is who they say they are.
When they were first introduced, deepfakes needed large amounts of real footage to produce, which meant they were usually limited to impersonating public figures. But the technology has improved considerably, and will only continue to get better.
More convincing fake ID documents
Thanks to AI-powered imaging software and advances in printing, fake ID documents are more convincing than ever. Fraudsters can create IDs that look almost identical to the real thing, using either their target’s information or creating a synthetic ID out of different people’s information—each individual feature of the ID document can appear valid even if it’s entirely fabricated.
Add the fraudster’s picture in place of the target’s, and it adds up to a forged ID document that’s nearly impossible to spot from a visual inspection.
It’s a new reality for legal professionals: a person can sit across the desk from you with an ID that shows their photo and appears completely legitimate, but is a fabrication. The disturbing truth is that it’s no longer a question of experience or expertise—relying solely on visual inspection of IDs isn’t enough.
The threat of AI-powered fraud will only grow
The most remarkable thing about generative AI is also the scariest: it’s always improving. Tools built from it have already transformed how fraudsters operate, and their impersonations will get harder and harder to detect as time passes.
How can legal professionals stay ahead of a tool that improves itself?
AI-powered impersonation still has one weakness. It’s focused almost entirely on fooling the human eye by presenting false or inconsistent information convincingly on the ID document itself, but that information also exists elsewhere and can be verified.
Client ID Verification from FCT is a powerful digital solution that takes advantage of this weakness. It can detect inconsistent or falsified information on identity documents, confirm the validity of IDs and the visual identity of the ID holder, all in one use of a mobile app.
Generative AI is still a young technology, and the future promises to bring even more tools people can use to deceive and defraud. Stay ahead of the curve by always verifying your clients’ ID, whether they’re on the phone, video call or even sitting across the table.
Learn more about Client ID Verification from FCT and join the future of fraud prevention today.
Services by First Canadian Title Company Limited. The services company does not provide insurance products. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
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