AI is already making online swindles easier. It could get much worse.
Anton Cherepanov is always on the lookout for something interesting. And in late August last year, he spotted just that. It was a file uploaded to VirusTotal, a site cybersecurity researchers like him use to analyze submissions for potential viruses and other types of malicious software, often known as malware. On the surface it seemed innocuous, but it triggered Cherepanov’s custom malware-detecting measures. Over the next few hours, he and his colleague Peter Strýček inspected the sample and realized they’d never come across anything like it before. The file contained ransomware, a nasty strain of malware that encrypts the files it comes across on a victim’s system, rendering them unusable until a ransom is paid to the attackers behind it. But what set this example apart was that it employed large language models (LLMs). Not just incidentally, but across every stage of an attack. Once it was installed, it could tap into an LLM to generate customized code in real time, rapidly map a computer to identify sensitive data to copy or encrypt, and write personalized ransom notes based on the files’ content. The software could do this autonomously, without any human intervention. And every time it ran, it would act differently, making it harder to detect. Cherepanov and Strýček were confident that their discovery, which they dubbed PromptLock, marked a turning point in generative AI, showing how the technology could be exploited to create highly flexible malware attacks. They published a blog post declaring that they’d uncovered the first example of AI-powered ransomware, which quickly became the object of widespread global media attention. But the threat wasn’t quite as dramatic as it first appeared. The day after the blog post went live, a team of researchers from New York University claimed responsibility, explaining that the malware was not, in fact, a full attack let loose in the wild but a research project, merely designed to prove it was possible to automate each step of a ransomware campaign—which, they said, they had. PromptLock may have turned out to be an academic project, but the real bad guys are using the latest AI tools. Just as software engineers are using artificial intelligence to help write code and check for bugs, hackers are using these tools to reduce the time and effort required to orchestrate an attack, lowering the barriers for less experienced attackers to try something out. The likelihood that cyberattacks will now become more common and more effective over time is not a remote possibility but “a sheer reality,” says Lorenzo Cavallaro, a professor of computer science at University College London. Some in Silicon Valley warn that AI is on the brink of being able to carry out fully automated attacks. But most security researchers say this claim is overblown. “For some reason, everyone is just focused on this malware idea of, like, AI superhackers, which is just absurd,” says Marcus Hutchins, who is principal threat researcher at the security company Expel and famous in the security world for ending a giant global ransomware attack called WannaCry in 2017. Instead, experts argue, we should be paying closer attention to the much more immediate risks posed by AI, which is already speeding up and increasing the volume of scams. Criminals are increasingly exploiting the latest deepfake technologies to impersonate people and swindle victims out of vast sums of money. These AI-enhanced cyberattacks are only set to get more frequent and more destructive, and we need to be ready. Spam and beyond Attackers started adopting generative AI tools almost immediately after ChatGPT exploded on the scene at the end of 2022. These efforts began, as you might imagine, with the creation of spam—and a lot of it. Last year, a report from Microsoft said that in the year leading up to April 2025, the company had blocked $4 billion worth of scams and fraudulent transactions, “many likely aided by AI content.” At least half of spam email is now generated using LLMs, according to estimates by researchers at Columbia University, the University of Chicago, and Barracuda Networks, who analyzed nearly 500,000 malicious messages collected before and after the launch of ChatGPT. They also found evidence that AI is increasingly being deployed in more sophisticated schemes. They looked at targeted email attacks, which impersonate a trusted figure in order to trick a worker within an organization out of funds or sensitive information. By April 2025, they found, at least 14% of those sorts of focused email attacks were generated using LLMs, up from 7.6% in April 2024. In one high-profile case, a worker was tricked into transferring $25 million to criminals via a video call with digital versions of the company’s chief financial officer and other employees. And the generative AI boom has made it easier and cheaper than ever before to generate not only emails but highly convincing images, videos, and audio. The results are much more realistic than even just a few short years ago, and it takes much less data to generate a fake version of someone’s likeness or voice than it used to. Criminals aren’t deploying these sorts of deepfakes to prank people or to simply mess around—they’re doing it because it works and because they’re making money out of it, says Henry Ajder, a generative AI expert. “If there’s money to be made and people continue to be fooled by it, they’ll continue to do it,” he says. In one high-profile case reported in 2024, a worker at the British engineering firm Arup was tricked into transferring $25 million to criminals via a video call with digital versions of the company’s chief financial officer and other employees. That’s likely only the tip of the iceberg, and the problem posed by convincing deepfakes is only likely to get worse as the technology improves and is more widely adopted. BRIAN STAUFFER Criminals’ tactics evolve all the time, and as AI’s capabilities improve, such people are constantly probing how those new capabilities can help them gain an advantage over victims.
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