Small business owners face rising AI-based scams, prompting bankers to advise caution and vigilance.
SAN ANGELO, Texas — AI-related scams targeting small business owners are on the rise, moving bankers to warn their clients to exercise caution.
A survey by lending software provider Abrigo found that 85% of small business owners are concerned about AI-driven fraud, with 40% having experienced it firsthand. Scammers use AI to mimic voices and access sensitive information, using it to steal money from businesses.
Casey Barrett, Texas State Bank’s president, said email scams are becoming increasingly sophisticated.
“They can make an email that looks and feels like it came from the executive of a company,” he said. “Or if they can get into your calendar and find out if an executive is on leave, then that executive may ’email’ someone.”
Barrett said business owners should think twice before clicking suspicious links or calling numbers attached to these emails.
Abrigo’s survey also found that check fraud is on the rise- something Barrett has seen locally. He said scammers steal checks from small business owners, alter them and cash them at other financial institutions. He recommends switching to electronic banking to prevent fraud issues related to stolen checks.
Barrett said small business owners often have just 24 hours to report fraudulent transactions. Because most have separate accounts for business and personal use and frequently write checks, they often don’t notice the funds missing until it’s too late.
