02/04/24

FINTECH: AI Tax Scam Risk Calls for Adaptive Security

As published on: news.bloomberglaw.com, Tuesday 2 April, 2024. 

Artificial intelligence is already fueling sophisticated email phishing attacks and automated fraudulent tax returns. And by this time next year, we could be confronting an entirely new landscape of AI-enabled fraud.

Deepfake technology is advancing rapidly and could be deployed to impersonate tax officials on a massive scale. Hyper-realistic voice or even video simulations could be used to create fraudulent communications that are indistinguishable from legitimate tax authority directives—or missives from accountants and money managers.

Imagine a loved one receiving a phone call or video message from what appears to be a trusted accounting professional, urging immediate action or the sharing of sensitive financial information. Now imagine that process fully automated.

Combining existing technologies with AI, scammers could churn through tens of millions of potential victims and generate and file millions of tax returns, optimized to claim refunds or credits fraudulently. The method could echo the relentless probing by bots of any computer connected to the internet, except it targets the financial security of individuals and the public fisc.

Taxpayers, professionals, and authorities must either adapt or fall victim. We’re past the point of asking whether AI is a threat. As it continues to evolve, our vigilance and security measures must eclipse scammers outfitted with these new tools.

We must invest in advanced detection systems at the tax authority level, educate taxpayers about emerging threats, and foster a change in security culture that entails constant evolution. Most important, we must all endeavor to stay abreast of the changing accounting and tax security landscape.

Tags

AI Tax Scam Security Cyber security