[co-author: Stephanie Kozol]*

Illinois Attorney General (AG) Kwame Raoul recently issued a consumer alert to Illinois consumers regarding the use of artificial intelligence (AI) by phone scammers. According to the alert, phone scammers are regularly employing AI technology to mimic the voice of consumers’ loved ones to manipulate consumers into giving financial payments.

In seeking to confuse and deceive consumers, the scammers use AI technology to clone audio snippets, often pulled from readily available social media accounts. Once they have convinced consumers that they are a loved one, the scammers typically request money, crypto currency, gift cards, or even attempt to ascertain the consumer’s credit card numbers and PINs.

While the use of AI to commit these family-centric fraud schemes is on the rise, it is not a novel concern for regulators. In 2023, the FTC warned consumers of the rising use of AI for what it called “family emergency schemes.” And in October 2023, the White House issued an executive order noting the potential use of AI technology to commit fraud.

Why It Matters

State AGs’ and regulators’ focus on AI deception and fraud further emphasizes the concerted attention being placed on consumer protection regardless of venue and framework. Accordingly, companies need to stay apprised of state AG and regulatory developments as the efforts to curtail all forms of consumer deception are only increasing given the expanded use of AI.

*Senior Government Relations Manager