SOS Giannoulias Warns Illinoisans Of High-Tech Financial Scams

Springfield, IL-(Effingham Radio)- Illinois Secretary of State Alexi Giannoulias is issuing a warning to Illinois residents that scammers are leveraging new sophisticated technology to gain access to personal information and financial accounts.

“Artificial intelligence (AI) has made it more difficult for people to determine if requests coming from an email, text, phone call or even a video message are legitimate,” Giannoulias said. “Voice cloning and deepfake videos, used to fraudulently gain access and trust, are becoming more prevalent. Our Securities Department has been tasked with educating and protecting investors against these advanced scam attempts.”

The Illinois Secretary of State regulates the securities and investment advisory industries in Illinois and pursues an enforcement program designed to protect Illinois investors from those engaged in unlawful investment-related activities. The office is planning to conduct a series of public meetings later this fall to provide more details on how to detect deceptive scams and how to avoid them.

The advanced technology available allows scammers to broaden the threat posed beyond those who are unaware or vulnerable. Even the most cautious consumers are at risk of financial losses from enhanced AI-powered fraud attempts aimed at luring victims by promising quick profits with no risk.

“Financial scams can be as damaging emotionally as they are economically because of the betrayal of trust and feelings of embarrassment,” said Securities Department Director Chet Taylor. “Not only have I witnessed people falling victim to these types of scams, but I hear stories everyday of people who have had their lives completely altered because they trusted the wrong person.”

Giannoulias is raising awareness about these scams and encouraging the public to approach these requests with a healthy amount of skepticism so they can avoid giving out their personal identifiable information (PII), losing money or inadvertently squandering their life savings. The most prolific scams include:

• Deepfakes. Criminals have used AI to send dupe emails for several years, but recently have begun creating audio and video messages that impersonate real people to commit fraud. The visual and/or auditory likeness of senior bank officials, investment firm employees, government officials and even family members have been generated to deceive people into sending money to fraudulent accounts.

• Romance Scams.  Perpetrators connect with the victim through social media or a dating app to slowly build a relationship through repeated virtual interactions before making emotional appeals for money.

• Ponzi Schemes. Criminals create fake investments involving large numbers of investors — commonly with digital currency. The perpetrator typically creates fake account statements showing investments but when new funding dries up, the scheme collapses.

• Affinity Scams. Scammers seek to gain the trust of a group of people they claim to be part of, such as a religious group or an ethnic group, and then exploit that trust by selling fraudulent investments.

Investing itself comes with risks, but there are a few simple steps prospective investors can take:

• Validate Identities. E-mails, texts, phone calls and video messages can be used to manufacture identities to more easily gain access to personal or financial information. Prospective investors should always validate the sender’s identity and their claims of representing an organization or company. They should also ask questions that have answers that are not publicly available.

• Check their Record. Prospective investors can make sure the person offering an investment opportunity is licensed by visiting BrokerCheck or Investment Adviser Public Disclosure to check their license status and disciplinary record.

• Avoid Untrusted Sources. Clicking on links or opening attachments from suspicious or untrusted sources should always be avoided. Before clicking on a link, it is recommended that the user hovers over the URL or website address to determine if it is a legitimate link. If a person receives a call requesting money or personal information, they should ask to call back and take time to confirm the caller’s legitimacy. It is recommended that individuals call the claimed source’s trusted number, especially if it differs from the number that called them to request information.

• Protect Digital/Social Media Accounts. All individuals should strengthen their control over their accounts by boosting security settings, creating strong login credentials and protecting devices with anti-virus software.

• Trust Your Gut. If it sounds too good to be true, it probably is. All individuals should be wary of unsolicited sources that promise easy money.

• Report Scams. Individuals can report scams to the Illinois Secretary of State’s Securities Division by calling (800) 628-7937 or visiting www.ilsos.gov/departments/securities. The office will investigate the report and bring cases against those responsible for frauds, scams and other bad business practices.