ASA Warns of Increasing Threat of Cyber Criminals Utilizing Artificial Intelligence

Strategic Insights -

The American Securities Association (ASA) has sounded the alarm on the growing threat of cyber criminals using artificial intelligence (AI) to target American investors and consumers. In a letter to the Senate Banking Committee, ASA President and CEO Chris Iacovella warned that AI-enhanced fraud has become a lucrative business opportunity for state-sponsored actors, with the potential to harm millions of Americans.

Key Takeaways:

  • The ASA estimates that Americans will lose $40 billion to generative AI-enhanced fraud by 2027, according to Deloitte estimates.
  • The Federal Trade Commission (FTC) estimates that Americans lost over $158 billion to fraud in 2023 alone.
  • State-sponsored actors, including those supported by Russia, China, and Latin American drug cartels, are among the biggest threats.
  • Criminals are becoming increasingly sophisticated in their techniques using generative AI and other means.
  • Fraud has gone from an individual criminal act to a business opportunity funded by state-sponsored actors across the globe.
  • The ASA is advocating for a partnership between the private sector and government to combat the sophistication of this ever-changing criminal activity.
  • A secure portal where regulated entities can anonymously report trends or fraudulent activity targeting their firms or their customers could provide regulators with more intelligence about the latest scams.

Statistics:

  • $158 billion: The amount of money lost to fraud in 2023 alone, according to the FTC (https://www.sec.gov/files/20250306-isc-fraud-briefing-iac-meeting.pdf).
  • $40 billion: The estimated amount of money that Americans will lose to generative AI-enhanced fraud by 2027, according to Deloitte estimates (Id.).
  • 2023: The year in which Americans lost over $158 billion to fraud (https://www.sec.gov/files/20250306-isc-fraud-briefing-iac-meeting.pdf).

Sources:

  • American Securities Association (https://www.americansecurities.org/post/asa-highlights-increasing-threat-of-cyber-criminals-utilizing-artificial-intelligence)
  • Deloitte (Id.)
  • Federal Trade Commission (https://www.sec.gov/files/20250306-isc-fraud-briefing-iac-meeting.pdf)
  • Senate Special Committee on Aging and the House Select Committee on the Chinese Communist Party (https://www.aging.senate.gov/hearings/financial-aggression-how-the-chinese-communist-party-exploits-american-retirees-and-undermines-national-security)
  • Fox Business (https://www.foxbusiness.com/lifestyle/openai-ceo-sam-altman-warns-ai-fraud-crisis-very-soon)