The use of artificial intelligence by cybercriminals is fueling a rapid increase in online fraud, according to Microsoft’s latest Cyber Signals report. Over the past year, the company says it successfully prevented $4 billion worth of fraud attempts, blocking an estimated 1.6 million bot sign-up efforts every hour. This alarming figure demonstrates how AI is reshaping the cybercrime landscape, making scams more accessible to even low-skilled offenders.
The report, titled “AI-powered deception: Emerging fraud threats and countermeasures,” explains that AI technology has significantly lowered the barriers to entry for online fraud. Tasks that once required considerable time and effort can now be completed within minutes using AI tools. These technologies enable criminals to gather detailed data on businesses and individuals, allowing them to craft highly convincing social engineering attacks.
Fraudsters are using AI-generated product reviews, fake storefronts, and fabricated business histories to lure victims, particularly in e-commerce and job recruitment scams. Deceptive websites that mimic legitimate businesses can now be set up quickly, using AI-created content and chatbots that respond convincingly to customer inquiries. These bots often delay refund requests or complaints, giving scam sites an added layer of false credibility.
Job seekers are another major target. AI makes it easier for scammers to produce fake job postings, build fraudulent profiles, and conduct phishing campaigns aimed at collecting sensitive personal information like resumes or bank details. Some scams even use AI-powered interviews to seem more authentic, making them harder to detect.
Microsoft’s anti-fraud team has identified significant scam activity originating from regions like China and Germany, with the scale of fraud attempts often matching the size of digital marketplaces. To tackle these threats, Microsoft has implemented several protective measures, including fraud prevention policies across its products, enhanced phishing detection in Microsoft Edge, and improved scam warnings in Windows Quick Assist.
As AI scams continue to grow in sophistication, Microsoft urges consumers to remain cautious—highlighting the importance of verifying sources, being wary of urgent requests, and avoiding sharing personal information with unverified parties. For businesses, tools like multi-factor authentication and deepfake detection are recommended to reduce risks.
