BEYOND THE LOT (MAY 2023): BEWARE OF ARTIFICIAL INTELLIGENCE (AI) FRAUD AT YOUR CAR DEALERSHIP
Artificial Intelligence (AI) is revolutionizing various industries in America; however, scammers are taking advantage of its increased usage and sophistication to perpetrate fraud.
Car dealerships are a prime target for AI frauds because they deal with high-value transactions and collect sensitive customer information. Scammers may pose as legitimate car buyers, use fake identities, or steal the identities of real customers to gain access to dealerships’ databases and systems. Once they have gained access, they can use AI to automate their fraud and steal substantial amounts of money or valuable data.
Not only can AI frauds damage the reputation and profitability of car dealerships, but they also harm their customers’ trust and satisfaction. Therefore, it is essential for car dealerships to be aware of the common types of AI frauds and how to prevent them:
Voice-cloning frauds: Scammers use voice-mimicking software to create fake audio recordings of customers, sellers, or third parties and use them to make fraudulent calls or messages.
Chatbot frauds: Scammers use chatbot software to create fake online conversations with customers, sellers, or third parties and use them to lure them into clicking malicious links, downloading malware or providing personal or financial information.
Deepfake frauds: Scammers use deepfake software to create fake videos of customers, sellers or third parties and use them to deceive them into believing something that is not true or doing something that is not in their best interest.
It is important for car dealerships to stay vigilant and proactive in the face of this evolving threat to maintain their reputation, profitability and customers’ trust and satisfaction. Schwartz Ettenger recommends the following tips in protecting your car dealership against AI frauds:
- Verify the identity and authenticity of the callers, messages and videos before engaging with them.
- Educate your staff and customers about the potential risks and signs of AI frauds.
- Use secure and reliable communication and payment platforms.
- Update your security systems and policies.
- Report any suspicious or fraudulent activity to the authorities.
If you have any questions or need additional guidance in protecting your car dealership against AI frauds, contact Schwartz Ettenger at (631) 777-2401 or complete our form here.