Gxc Team Implemented Artificial Intelligence (AI) For Invoice Fraud

January 15, 2024
Artificial Intelligence For Invoice Fraud

As Artificial Intelligence evolved, it brought a new spectrum to the technological geeks without knowing its end results. Professional services always have two sides, including the vast utilization of Artificial Intelligence as it opens new chapters of threats and cyber scams. GXC Team, a notorious group of cyber criminals, has taken advantage of AI to commit invoice fraud and deceive businesses.

Invoice fraud is a type of scam where an individual or organization manipulates invoices for their own financial gain. It can range from fake invoices being sent to unsuspecting companies to altering legitimate invoices for higher payments. With the advancement of technology, cybercriminals have found more sophisticated ways to carry out this fraudulent activity.

GXC Team’s Unexpected Entry Through Artificial Intelligence

The use of AI by the GXC Team has made it easier for them to create convincing fake invoices that are difficult to detect. By analyzing data and patterns from previous legitimate invoices, they created realistic-looking documents with incorrect payment information.

GXC specializes in crafting tools for online banking theft, ecommerce deception, and internet scams. Around November 11th, 2023, the group’s leader, operating under the alias “googleXcoder“, made multiple announcements on the Dark Web. On New Year’s Eve, the group declared significant price reductions, offering up to a 20% discount on their products available on the Dark Web.

According to an FBI Report 2021, successful business email compromise (BEC) scams (such as invoice fraud) resulted in an average loss of over $120,000 per incident, imposing a staggering financial toll of more than $2.4 billion on organizations.

GXC Team's Unexpected Entry Through Artificial Intelligence

Invoice Fraudsters: Where Negativity Meets Gen AI!

AI-driven media like FraudGPT and WormGPT have genuinely transformed the game. These frameworks enable the creation of intricate and sophisticated Business Email Compromise (BEC) campaigns, generating content for “Money Mule” scam used in money laundering schemes. These AI platforms even provide pre-made malicious strategies and tools.

This update was shared on the official “GXC Team” Telegram channel. The tool can be rented for $2,000 per week or accessed unlimitedly for a one-time fee of $15,000.

Start Of Fraudulent Activity

This tool uses super smart detection algorithms to analyze compromised emails via POP3/IMAP4 protocols. It’s like a detective that spots messages mentioning invoices or attachments with payment details. And guess what? Once it detects them, it goes ahead and changes the recipient’s banking information to the specified particulars.

The altered invoice is either replaced in the original message or sent to a list of preselected contacts. These sneaky professional services are commonly used in wire fraud and fake invoice scams. Sadly, sometimes even the accountants and staff of victimized companies fall for it, not thoroughly checking familiar or almost genuine invoices, resulting in unverified payments. So stay sharp, folks!

The “GXC Team” has developed tools for over 300 entities, including financial institutions, government services, postal services, cryptocurrency platforms, payment networks, and major online marketplaces like AMEX, Amazon, Binance, Coinbase, Office 365 (Microsoft), PayPal, ING, Deutsche Bank, and Spanish banks like ABANCA, Banca March, Banco de Sabadell, and more.

The Art of Scamming Tricks

Scammers created Android code to bypass 2FA by mimicking banking apps. Victims unknowingly install the fake app, thinking they’re verifying their OTP. The attacker intercepts the OTP and obtains login credentials through phishing. Using residential proxies, the attacker gains unauthorized access to the victim’s banking account.

Fraud is on the Rise

The “GXC Team” has developed kits to steal identity information from Australian and Spanish citizens. They create fake government websites. 

AI in cybercrime isn’t new. It’s been used for malicious activities like spamming, bypassing anti-spam filters with neural networks, and techniques like Markov Chains. AI has even been used in Black SEO, where neural networks generate deceptive web content. Can you believe it?

Online Scams with Technique

Hacker’s Handbook: Online Scams with Technique

The integration of Artificial Intelligence (AI) into cybercriminal activities, including invoice fraud, is a concerning trend. AI adds a touch of “genius” to these fraudulent endeavors, taking them to a whole new level of professional services via sophistication and effectiveness.

  • Generating Automated Fake Invoices

Artificial Intelligence algorithms have the capability to produce fake invoices that exhibit a striking resemblance to those issued by genuine businesses. These deceptive invoices adeptly imitate the style, format, and language, rendering them remarkably persuasive and remarkably difficult to detect.

  • Social Engineering and Phishing Attacks

AI-powered social engineering attacks have the ability to analyze and emulate the communication styles of trusted individuals within an organization. This insidious tactic aims to deceive employees into authorizing fraudulent payments based on falsified invoices.

  • Recognizing Patterns and Targeting

AI has serious skills when it comes to analyzing massive datasets. It can spot patterns in organizations’ payment behaviors like a pro! Unfortunately, cybercriminals can turn this knowledge into targeted and super-convincing fraudulent invoices. They’re like master tailors, customizing their scams for specific companies.

  • The Phenomenon of Deepfake Technology

Deepfake technology, a super cool subset of AI, lets scammers play around with audio or video recordings to mimic legitimate voices or faces within an organization. Scammers could totally trick employees into approving payments based on fake invoices.

  • Bypassing Behavioral Analysis

AI can totally analyze and mimic the behavioral patterns of authorized personnel within an organization. And guess what? Cybercriminals can use it to sneak past security measures that rely on behavioral analysis to catch suspicious activities.

How Can We Effectively Mitigate The Risk Of Ai-Enhanced Invoice Fraud? 

To minimize the risk of AI-enhanced invoice fraud, organizations should consider implementing the following measures:

  • Proper education for employees

Equip your awesome team with the know-how to spot sneaky invoice fraud tactics, even those powered by AI. Stay sharp and keep an eye out for unexpected or urgent payment requests.

  • Enforce Multi-Factor Authentication

Go ahead and level up your security game for financial transactions by using multi-factor authentication. It provides an additional safeguard, ensuring the security and integrity of your transactions.

  • Regularly Update Security Measures

Make sure you stay one step ahead of cyber threats by keeping your security software, firewalls, and antivirus programs up to date. It’s like having your own digital protection.

  • Verify Invoices and Payment Requests

Set up a rock-solid verification process for invoices and payment requests. Remind the team to reach out to trusted contacts using secure channels before giving the green light for payments.

  • Monitor Abnormalities

Set up some awesome monitoring systems that can spot absurd patterns in financial transactions or communication within the organization.

  • Always Stay Updated

Stay in the know about all the latest cyber threats, and make sure to spread the word to your team. Together, you can level up your cybersecurity game and keep your organization safe.

In Summary

Fighting off AI-enhanced cyber threats calls for a well-rounded strategy that combines tech know-how, staying vigilant, and taking proactive security steps. Wanna boost your operations and keep those cyber attackers at bay? Consider rocking IT Managed Services Provider with Graphene Technologies to stay updated and secure in real time!

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