Watch out for financial scams on ChatGPT

Many of us routinely use AI tools like ChatGPT for advice and recommendations - and that’s creating an opportunity for fraudsters.

Criminals are launching so-called “poisoning attacks”, where they inject malicious documents into an AI tool’s training data.

So when users input certain words and phrases, the AI produces inaccurate information and recommends scam websites.

Unsuspecting members of the public may not spot at first glance that these sites aren’t genuine, so may be tricked into paying for goods and services that never arrive.

A growing risk 

National Trading Standards and Ask Silver are warning this is a “huge emerging threat to consumers and businesses”.

“Criminals are becoming increasingly skilled at creating websites that closely mimic trusted brands, making them difficult to spot with the naked eye,” said Alex Somervell, co-founder of Ask Silver.

“We were shocked to find that these clone sites are now being recommended by AI. 

“This is likely the beginning of a new pattern of behaviour in fraud and may be just the tip of the iceberg."

Louise Baxter of National Trading Standards added that this “worrying” threat is a “stark reminder that fraudsters will exploit any new technology that helps them reach potential victims”.

How to avoid AI scams

If you want to stay safe online, there are few practical steps you can take.

Stop and think

Don’t assume that a website is genuine just because it’s been recommended by an AI tool.

Instead, take a moment to check it’s the real deal before buying anything or sharing any personal information.

Watch out for red flags

Look out for giveaway signs that a website isn’t what it seems, such as:

• poor spelling, punctuation and grammar
• low-quality images
• awkward layouts
• misspellings, extra characters and unusual extensions in web addresses

Review the payment process

Legitimate websites will usually offer secure payment options such as debit and credit cards or PayPal.

If you choose to pay with PayPal, never use the "Friends and Family" option when buying goods or services. 

Instead, select "Goods and Services" to benefit from buyer protection.

Be wary of tempting deals

We say this regularly when talking about scams, but for good reason.

If a deal, discount or offer looks too good to be true, it probably is. 

Scammers often use unrealistically low prices to lure people into handing over money or personal details.

Use a scam checker

If you're unsure about a website, use a scam-checking service before proceeding.

Tools such as Ask Silver and Get Safe Online can help identify known scams and highlight potential risks.

Check that the company is properly registered

A genuine business should clearly display details about who owns and operates it.

If you're considering an investment, use the Financial Conduct Authority's free Firm Checker tool to verify that the company is authorised and regulated.

Check online reviews

If you don't recognise a website or company, see what other customers have to say.

Review platforms such as Trustpilot and Google Reviews can provide useful insights into other people's experiences, helping you spot warning signs before making a purchase.

Check for clear shipping, privacy and returns policies

Reputable businesses are transparent about how they handle deliveries, returns, refunds and customer data.

If you can't easily find these policies, or they appear vague or incomplete, consider it a warning sign and think carefully before proceeding.

How to report a scam

If you spot a scam or believe you’ve been defrauded, report it to Report Fraud at www.reportfraud.police.uk or by calling 0300 123 2040.

If you get a scam email, forward them to [email protected], and if you received a dodgy text, forward it to 7726.

What else can I do if I’ve been scammed?

If you believe you have fallen victim to a scam:

• contact your bank or card provider immediately and explain what has happened
• change any passwords that may have been compromised
• monitor your accounts for suspicious activity
• run a security scan on your device and ensure your software is up to date

The sooner you act, the better your chances of limiting any financial loss and protecting your personal information.