The Rising Threat of Deepfake and Fraudulent Calls in 2024

The Growing Danger of AI-Powered Phone Scams

Fraudulent and nuisance calls have reached alarming levels worldwide, with over one billion scam calls reported in the last quarter of 2024 alone. According to Hiya’s Q4 2024 Global Call Threat Report, deepfake technology is becoming a major tool for fraudsters, deceiving unsuspecting consumers at an increasing rate.

The report, based on data from 12,000 global consumers and Hiya’s Voice Intelligence Network, highlights a 1.5 billion increase in unwanted calls between Q3 and Q4 of 2024. Among the 11.3 billion spam calls recorded, 22% were classified as nuisance calls, while 9% were directly linked to fraud.

Deepfake technology, powered by artificial intelligence, has made scam calls more convincing than ever. A staggering 40% of Brits and 45% of Americans exposed to deepfake calls admitted they fell victim to them. Even more concerning, 35% of Brits and 34% of Americans reported financial losses, while 32% had personal information stolen.

Financial damages from voice-based fraud are significant, with American victims losing an average of $539, while in the UK, this figure rises to £595 ($751). Canada and France have even higher losses, at CA$1479 ($1037) and €1089 ($1141), respectively.

Spam call frequency also varies across regions. Germans received around three spam calls per month, while Brazilians and Chileans were hit the hardest, averaging 28 calls per person. In Europe, Spain and France topped the list with 15 nuisance calls per individual. Interestingly, despite the high rate of financial losses in the UK, it had one of the lowest spam call rates in Europe, at just four calls per person.

Common scams differ by region. In the UK, HMRC scams were the most prevalent throughout 2024, while in the US, Medicare-related fraud dominated. A troubling study from University College London (UCL) in 2023 revealed that people fail to distinguish deepfake speech from real human voices 27% of the time, emphasizing the growing challenge of detecting AI-generated fraud.

The most common themes of deepfake scam calls in Q4 2024 included banking and finance (11%), followed by insurance, holiday bookings, and delivery services (each at 8%).

What Undercode Says:

The Evolution of Fraud: AI’s Growing Role in Cybercrime

The rapid adoption of AI has introduced an entirely new dimension to phone scams, making fraudulent calls more realistic and harder to detect. Deepfake technology, once confined to manipulated videos and social media hoaxes, is now being weaponized in voice-based fraud, deceiving consumers at unprecedented rates.

AI-generated voices can mimic real people with astonishing accuracy, creating scenarios where victims believe they are speaking to a trusted institution or even a loved one. As the Hiya report shows, nearly half of those who encountered deepfake calls in Q4 2024 were tricked, leading to significant financial and personal data losses.

Why Are Deepfake Scams So Effective?

Human Perception Flaws – The UCL study underscores a major problem: humans struggle to differentiate between real and AI-generated voices. This cognitive limitation gives fraudsters an edge, as their scams no longer rely solely on scripting but on hyper-realistic vocal impersonations.
Psychological Manipulation – Scammers exploit urgency and fear. Calls pretending to be from banks, government agencies, or medical institutions pressure victims into making quick decisions, such as transferring money or providing sensitive information.
Wide-Scale Automation – AI allows fraudsters to scale their operations massively. Unlike traditional phone scams, where a human caller is needed for each attempt, AI-powered bots can make thousands of calls simultaneously, increasing their success rate.

Global Differences in Scam Exposure

The variations in spam call frequency across countries suggest differing levels of scam sophistication and regulatory effectiveness. Countries like Brazil and Chile, with high scam call volumes, may lack stringent telecommunication security measures, making their populations easy targets. On the other hand, the UK’s relatively low call volume but high fraud impact suggests that scams in the region are highly convincing and well-targeted.

The Economic and Social Impact

The financial cost of deepfake fraud is staggering. With average losses ranging from $539 in the US to over $1,000 in Canada and France, these scams are more than just a nuisance; they represent a significant economic threat. Beyond monetary losses, the psychological toll on victims is profound. People who fall for scams often experience shame, anxiety, and loss of trust in financial institutions and phone-based communication.

Fighting Back Against AI-Powered Fraud

As deepfake scams become more advanced, countermeasures must evolve. Some possible solutions include:

AI-Based Fraud Detection – Just as scammers use AI to deceive, companies and governments should leverage AI-driven detection tools to identify suspicious call patterns and flag potential fraud.
Public Awareness Campaigns – Educating consumers about deepfake scams and how to verify the authenticity of calls can reduce the success rate of these frauds.
Stronger Regulations – Governments must enforce stricter policies on AI misuse and enhance penalties for fraudsters.
Caller Authentication Technology – Implementing secure call verification systems, such as STIR/SHAKEN protocols, can help filter out fraudulent calls before they reach consumers.

The Future of Deepfake Fraud

Looking ahead, deepfake scams are likely to become even more sophisticated. As AI improves, fraudsters may integrate real-time voice modulation, making detection even harder. The battle against AI-powered fraud will require ongoing innovation, robust security measures, and heightened consumer vigilance.

While deepfake technology has many legitimate applications, its misuse in fraud highlights the urgent need for stronger defenses. As we enter 2025, both businesses and individuals must stay ahead of the evolving threat landscape to protect themselves from AI-driven deception.

References:

Reported By: https://www.infosecurity-magazine.com/news/quarter-brits-report-deepfake-calls/
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