An AI Chatbot Duped Social Security Staffers. The SSA Has Taken Notice.

News July 25, 2023 at 03:10 PM
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The U.S. Social Security Administration is the latest government agency to outline its plans to confront emerging challenges and opportunities presented by the rise of artificial intelligence technologies, including the already-successful use of AI-based chatbots to steal money from unwary SSA staffers and beneficiaries.

To that end, the special agent in charge of the major case unit within the Social Security Administration's Office of the Inspector General briefed members of Congress last week about the emerging threats presented by artificial intelligence — especially its potential use to defraud Social Security beneficiaries.

According to special agent Anthony "AJ" Monaco, a recent investigation conducted by the SSA's Inspector General discovered that an AI-powered chatbot was successfully used to impersonate beneficiaries and contact customer service representatives to divert monthly benefit payments to spurious accounts.

Like the more common government impersonation scams SSA investigates, the chatbot numbers originated from overseas, Monaco said.

The chatbots were effective in moving stolen Social Security benefits into the stream of criminal commerce here in the United States, where organized rings of "money mules" collected and moved the proceeds, Monaco noted.

Monaco spoke before members of the House Committee on Ways and Means' Subcommittee on Social Security. In addition to briefing the members on the chatbot attack, he also spoke more broadly about the SSA's planned response to AI-assisted threats to Social Security's critical programs and systems.

As Monaco told lawmakers, artificial intelligence is quickly becoming a primary driver of emerging technologies and is affecting society in ways that everyone throughout the public and private sector are just beginning to understand.

"In both investigations and audits, our goal is to be at the forefront of AI-related issues by learning to leverage AI, such as in using advanced algorithms to spot abnormalities and outliers that are indications of fraud," Monaco said.

Monaco noted that SSA Inspector General Gail Ennis recently established an internal task force to formally study AI and related technology. From this effort, he said, the agency expects to determine the tools, processes and staffing needed to investigate and deter AI-related fraud — and to leverage AI in these efforts.

Of particular importance is the review of how the secure electronic delivery of funds may be put at risk, Monaco said, adding that the Office of the Inspector General understands that criminals will use AI to make fraudulent schemes easier and faster to execute, the deceptions more credible and realistic, and the fraud more profitable.

Echoing Monaco's comments, financial industry experts say artificial intelligence presents big opportunities for firms (and organizations like the SSA) to elevate their levels of service. At the same time, with this advancement, the debate and controversy continue to grow around privacy, regulation, which elements of financial advice will be or should be digitized, and what the ultimate impact will be.

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