ChatGPT Fraud: Mechanics and Strategies for Business Protection

Does ChatGPT steal your data? And is ChatGPT safe from hackers? Well, BBC News reported on the capability of AI, particularly OpenAI's ChatGPT, to absorb knowledge on social engineering swiftly. Crafty Emails, a bespoke version, could generate convincing texts for various hack and scam techniques, even across languages, with no coding required.

However, the public ChatGPT version refused to create content for known scam methods. OpenAI responded, emphasizing continual safety improvement, but faced criticism for potential lax moderation in its GPT Builders, potentially enabling criminals. Malicious AI use is a growing concern globally, with evidence suggesting scammers are leveraging large language models (LLMs) for more convincing scams. Concerns exist that OpenAI's GPT Builders might provide sophisticated tools for criminal exploitation.

What is ChatGPT Fraud?

ChatGPT fraud refers to any deceptive or malicious activity that involves exploiting the capabilities of ChatGPT, an AI language model developed by OpenAI, for illicit purposes. This can include various forms of scams, such as impersonation, phishing, or generating fraudulent content.

Also, ChatGPT fraud involves using the model to manipulate or deceive individuals, organizations, or systems for personal gain or to cause harm. This can also encompass unauthorized access to sensitive information, manipulation of online interactions for fraudulent purposes, and exploitation of vulnerabilities in ChatGPT systems or platforms.

10 Suspicious Trends Associated with ChatGPT

The questions that remain: Does ChatGPT steal your data? And is ChatGPT safe from hackers? Following are ten suspicious trends linked to ChatGPT:

1. Impersonation Scams

This is one form of ChatGPT scams, where fraudsters impersonate ChatGPT to engage with customers or employees, seeking sensitive information or financial transactions under false pretenses.

2. Malicious Content Generation

Malicious actors may abuse ChatGPT to generate deceptive or harmful content, such as fake reviews, misleading articles, or fraudulent advertisements.

3. Phishing Attacks

Through ChatGPT scams, criminals can craft sophisticated phishing messages tailored to individuals or businesses, aiming to trick recipients into divulging confidential data or installing malware.

4. Automated Fraudulent Transactions

ChatGPT scammers may leverage the tool to automate fraudulent transactions, such as creating fake accounts, generating counterfeit documents, or conducting unauthorized financial transfers.

5. Social Engineering Exploitation

ChatGPT can be exploited in social engineering schemes, where fraudsters manipulate human psychology to deceive individuals or organizations into divulging sensitive information or performing risky actions.

6. Fake Customer Support

ChatGPT Scammers might mimic customer support agents, providing false assistance to victims and potentially leading to financial losses or data breaches.

7. Misinformation Campaigns

ChatGPT can be misused to propagate misinformation or disinformation, influence public opinion, spread rumors, or incite unrest for malicious purposes.

8. Identity Theft

Fraudulent actors may employ ChatGPT to gather personal data and perpetrate identity theft, posing significant risks to individuals' financial security and reputation.

9. Fraudulent Business Practices

Some entities may exploit ChatGPT to engage in fraudulent business practices, such as deceptive advertising, false product claims, or unfair competition.

10. Data Breaches

If not properly secured, ChatGPT systems could be vulnerable to data breaches, potentially exposing sensitive information shared during conversations to unauthorized parties.

ChatGPT Clones: WormGPT and FraudGPT

Criminals have purportedly developed their own versions of large language models (LLMs), resembling ChatGPT and Google's Bard, for illegal activities. These chatbots, such as WormGPT and FraudGPT, have been promoted on dark web forums and marketplaces since July 2023.

The shady large language models (LLMs) claim to eliminate safety measures and ethical boundaries. In a test, one system was asked to generate an email for a business email compromise scam, resulting in an unsettlingly persuasive and strategically cunning message.

The creator of FraudGPT has boasted about its potential to create undetectable malware, identify vulnerabilities, and craft text for online scams. Rakesh Krishnan, a senior threat analyst at Netenrich, discovered FraudGPT being advertised on various dark web forums and Telegram channels.

Creating Fake ChatGPT to Breach Business Accounts

According to DarkReading, unsuspecting social media users who click on malicious links are directed to a fake ChatGPT homepage that closely resembles the real one. If they click the "download" button, which is already suspicious since ChatGPT doesn't have a desktop client, an executable file is installed.

Although users might see an error message or no message at all, in reality, a Trojan horse is activated. This Trojan searches for login details saved in the victim's browser, especially targeting business accounts like Google, Facebook, and TikTok. With access to these credentials, attackers could launch more serious attacks against enterprises, potentially obtaining financial information such as advertising spending and current balances.

ChatGPT Users Vulnerable to Credential Theft

As of June 2023, research conducted by Group-IB has revealed an uptick in threat actors targeting ChatGPT accounts, potentially aiming to gather sensitive data and orchestrate further targeted attacks.

According to Group-IB's findings, ChatGPT credentials have emerged as significant targets for illicit activities over the past year. Due to the default storage of user queries and AI responses by OpenAI's chatbot, each account represents a potential entry point for threat actors seeking access to users' information, posing risks such as identity theft, financial fraud, and targeted scams.

Protect Your Business Against AI-Driven Threats

To safeguard your organization against the growing threat of AI-driven scams, several proactive measures can be implemented:

1. Continuous Monitoring

Implementing powerful ongoing monitoring systems is critical. Internal alerts for unusual activities, such as large financial transactions or irregular payment patterns, can enable early detection of suspicious behavior. 

2. Company Security

Enforce stringent security measures by utilizing restricted networks, devices, and multi-factor authentication to prevent unauthorized access to sensitive information. Regularly monitoring networks and systems for anomalies, such as unauthorized logins or unusual data transfers, is crucial for maintaining organizational security.

3. Education and Training

Prioritize employee education and training to enhance awareness and response to potential scams, especially phishing attempts. Equipping staff with strategies for securely handling sensitive data is essential. Knowledge of AI and its role in scamming tactics empowers employees to promptly identify and report suspicious behavior.

4. Fight AI with AI

Leverage AI-based tools like the FOCAL Fraud Prevention AI platform to bolster fraud detection and prevention efforts. Machine learning algorithms can detect patterns indicative of fraudulent transactions, prompting further investigation. Also, FOCAL’s AI-powered monitoring tools can swiftly detect anomalies in network traffic and user behavior, facilitating prompt responses to mitigate potential damage.

Conclusion

To protect your businesses against ChatGPT fraud, you will need a proactive and thorough approach. This can occur by understanding ChatGPT fraud's intricacies and implementing effective protective strategies that enable your business to mitigate the risks associated with this emerging threat. 

Hackers often exploit new vulnerabilities across multiple companies until their tactics are recognized and thwarted. By staying connected with industry peers, you can receive early alerts about emerging exploits, allowing you to promptly implement necessary security measures.

While there's no foolproof solution against fraud, these measures can significantly reduce the risk of falling victim to such scams. Book a one-on-one demo today to see FOCAL in action and explore how it empowers organizations to fight fraud.