Ease of access unleashed a new wave of sophisticated digital deception, creating risks associated with customers using gen AI.
Generative AI offers exciting opportunities to maximize value and efficiency. But this powerful technology also carries a significant risk: the ability to forge convincing documents and artifacts that undermine the foundation of trust in your business processes.
Understanding this duality is the first step in safeguarding your future.
The Escalating Threat of Customers Using Gen AI
The accessibility of powerful AI tools has fundamentally changed the fraud landscape. Capabilities once limited to specialized technical environments, requiring significant time and expertise, are now readily accessible through user-friendly platforms. This ease of access has unleashed a new wave of sophisticated digital deception, creating business risks that current verification methods may not detect.
Consider these scenarios: A subcontractor submits AI-altered photographs showcasing unfinished work as complete. An external attacker generates convincing invoices from your trusted vendors, complete with proper letterheads and signatures. These aren’t just theoretical concerns—they’re happening now.
How This Impacts You as an Integrator
Several areas of your business are especially vulnerable to emerging threats.
Compromised installation verification: Don’t trust everything you see. Customers using gen AI could alter photos to show unfinished work as complete, hide physical damage, and mask problems like exposed cables or conduit. These changes often go unnoticed until system failures happen weeks or months later.
Vulnerable payment processing: Payment processing systems are increasingly susceptible to manipulation. AI can create realistic invoices, depicting correct technical terms and pricing. Without proper checks, these can trigger payments to fraudulent accounts.
Inflated expense reimbursements: Expense reimbursement processes are also at risk. Subcontractors could use AI to inflate reimbursement requests by altering lodging receipts or materials invoices, increasing the amounts and passing these inflated costs to you while pocketing the difference.
Manipulated project proposals: Proposal documents aren’t immune either. Competitors might subtly alter submitted documents, creating confusion around scope definitions or pricing structures to undercut legitimate bids.
Compromised client communications: Even direct client communications can be compromised. AI can generate highly convincing emails or voice recordings that appear to come from clients, requesting project changes or payment redirects.
Practical Protection Measures
Protecting your business requires balanced procedural and technological safeguards. Implementing a “trust but verify” policy creates a foundation for security.
- All substantial project milestones should contain in-person verification to counter AI manipulation.
- Establish robust documentation standards with requirements for metadata, timestamps and contextual information that’s harder to fake. Consider a live video process where a technician may be asked to show specific angles or approaches in real-time.
- For payments above a set threshold, require staff to verify vendor details using previously confirmed contact information—not the number on the invoice.
- Implement staggered approvals, requiring multiple verifiers for project completion and payment authorization.
- Use accessible detection tools to identify generated or manipulated images.
Finally, and perhaps most important, have proper insurance. Discuss your policies with your agent and determine what coverage is included for cybersecurity, social engineering and crime. Ask questions like, “If AI is utilized to produce fake documents resulting in a fraudulent payment or funds transfer, am I covered?” or “Is an AI generated voice scam that results in us sending a significant amount of money to an imposter covered?” Depending on the claim scenario, one of these types of coverage may be utilized in helping resolve the loss.
Building a Culture of Healthy Skepticism
An alert and mindful team remains one of the most effective defenses against emerging threats. A work environment valuing verification as a responsible business practice is vital.
Prioritize regular team education. Share examples of integrator-relevant forgeries so everyone understands what to watch for. Implement clear escalation procedures, ensuring employees know what to do when they spot something suspicious.
Acknowledge and reward vigilant behavior, even if reports turn out to be false alarms. When employees know they won’t be criticized for taking necessary precautions, they’re more likely to maintain appropriate diligence.
Integrate adequate review time into business processes to allow for thorough scrutiny of documentation and communications. This prevents rushed assessments that allow AI manipulations to slip through the cracks.
Trust But Verify
As AI technology advances, verification practices must evolve. By applying straightforward checks and balances, discussing these new risks with your team and understanding your risk exposure, you’ll be better equipped to mitigate these emerging threats effectively.
For integrators that want to strengthen their defenses, TrueNorth offers effective solutions, including cyber liability insurance, risk assessments led by certified experts, and the development of tailored incident response plans.
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