AI fraud and small business safeguards.

Automatically transcribed from the supplied recording, with obvious name-recognition errors corrected. The recording begins during the introduction and remains the authoritative record.

0:00 International services. Jay, thanks for being here. So how can AI be used to scam or harm someone and then who could be held responsible at this point? So that's a great question. The situation is that they can clone your voice. AI is being used to clone your voice. They're taking malware, which essentially is to get inside of your computer, your files, et cetera, and putting it inside AI tools and advertising it, sorry, as AI tools.

0:30 Those are some of the areas. The ability to look at sloppy accounting if you're a business owner, that those are aspects that you can look at as well through the actual use of AI. In terms of who's responsible, in the end, the way it stands right now is it's the individual in terms of insurance. There's nobody really touching that unless you and they're very reluctant to allow that cyber security insurance to cover it at this point.

0:58 In terms of suing the individual companies like ChatGPT or AI, I guess, they're not, you know, you can't sue them in last but not least is you're not going to be able to go after any independent hardware companies either.

1:15 Okay, so if a company knows its AI could cause harm and then releases it anyway, they can't face legal blowback. What can it mean legally, if anything?

1:25 So it's from a standpoint of, you kind of got to look at this as the creation of the internet, the creation of the cell phone, the creation of the computer, right?

1:34 There's nefarious people out there that are going to use those as instruments of destruction really at the end of the story.

1:42 So, you know, can we hold Apple accountable for somebody doing something fraudulent with your phone?

1:48 It's kind of the same mentality. This is a tool that's being offered. It's obviously there to benefit people's lives.

1:55 And from a legal standpoint, there is no stipulation that says that they're responsible.

2:00 It's not necessarily the platforms or the LLMs that it's how people are using them that is the issue.

2:08 Okay, so a lot of businesses are already using AI.

2:11 What should they be doing right now to protect their customers and themselves?

2:15 So in terms of businesses using AI, I've looked at a lot of stats on this.

2:20 We have our own stats. We go through 10 to 12,000 companies a year and they're asking us, you know, we would like AI.

2:26 Yes, there is a way of looking at your banking activity.

2:30 There's been a lot of duplication of people online and meetings like this and cloning their voice of higher ups and asking for transactions and those are going through.

2:38 The FBI found about $900 million. This is the first time they started looking at AI fraud.

2:44 And that's what they found in the last year. So what can they do?

2:47 They can use code words, actually, believe it or not, a code word specific.

2:52 A company I'm aware of did a $600,000 transaction by duplicating an email very specifically, but just having one vowel out.

3:01 That was the fraud that was used. And so being able to have the code word that's in large transactions like that

3:07 to be able to identify the person is one big area, being able to look at the tools themselves.

3:13 The one concern I have is that AI is being used by small businesses.

3:17 And in those small businesses, it's actually giving them a false sense of security that now they've kind of arrived.

3:23 I would look at training as it relates to the use of AI, build a system first, train your people how to use it and then bring AI on to make that system dynamic.

3:32 That's the real answer for small and medium sized businesses right now.

3:35 All right, good info. Jay Aldebert, International Services. Thank you for your time.