Small business owners are facing a growing threat from scammers using artificial intelligence to impersonate people, clone websites, and create fake job applicants.
The rise of generative AI has made these scams faster, cheaper, and much harder to detect, and it’s leaving real companies with big headaches.
A Job Posting That Didn’t Exist
Ian Lamont, who runs a how-to guide publishing company in Boston, was confused when his inbox filled up with job inquiries. He hadn’t posted any openings.
But on LinkedIn, he found a fake listing for a “Data Entry Clerk” under his company name and logo.
The scammer even made a phony profile of a manager, complete with an AI-generated face.
Lamont ended up hearing from over twenty people who had seen the fake listing and believed it was legitimate. He suspects that many more may have applied without realizing it was a scam.
Scams Are Getting Easier to Pull Off
Experts say AI is creating what amounts to an industrial-scale fraud machine.
Renée DiResta, who studies online abuse at Georgetown University, calls it “the industrial revolution for scams” because AI lowers the barrier to entry, reduces costs, and makes it easier for bad actors to reach more targets.
Microsoft says it now blocks around 1.6 million bot-based sign-up attempts per hour.
In one extreme case, a finance clerk at engineering firm Arup was tricked into joining a video call with what appeared to be his coworkers, including a deepfaked CFO.
He ended up approving over $25 million in fake overseas transfers.
Fake Stores, Fake Freebies
Kamila Hankiewicz, cofounder of Japanese knife store Oishya, discovered fraudsters had built a fake French-language version of her site and messaged her 10,000 Instagram followers with a scam.
They told customers they’d won a free knife and only needed to pay shipping. Nearly 100 people fell for it.
“The incident actually strengthened our relationship with many customers who appreciated our proactive approach,” Hankiewicz said to Business Insider.
She now runs customer education campaigns and beefed up her site’s security.
Even Fake Job Candidates
Tech recruiter Tatiana Becker calls deepfake applicants an “epidemic.” She’s now trained to spot red flags like glitchy video, no change in facial expression, or reluctance to remove headphones.
She also now asks candidates to show ID and describe their hobbies to verify they’re real.
On the flip side, PR executive Nicole Yelland was almost duped by a fake recruiter offering a too-good-to-be-true job.
After receiving an impressive AI-generated slide deck, she joined a Teams interview. The “recruiter” didn’t speak and asked her to respond in the chat box.
Then they requested sensitive documents, including her driver’s license. “It’s annoying and takes more time,” she said of her new habit of running background checks.
“But engaging with a spammer is more annoying and time-consuming; so this is where we are.”
Deepfakes Are Fooling Patients, Too
Jonathan Shaw, deputy director at the Baker Heart and Diabetes Institute in Melbourne, discovered a deepfake video of himself spreading dangerous misinformation about diabetes medication.
It took time, but Facebook eventually removed the fake ad after several of his patients contacted him, confused and worried.
The Mess of AI Slop
Low-quality, AI-generated content is also flooding the internet. Platforms like Pinterest and Amazon have been overrun.
Cake Life Shop in Philadelphia said people now send them cake designs that aren’t physically possible to make, including one resembling a mossy rainforest with a working waterfall.
Most customers are “receptive to hearing about what is possible with real cake after we burst their AI bubble,” said cofounder Nima Etemadi.
Fake guidebooks are also taking over Amazon. Pauline Frommer, head of Frommer Media, said AI-created travel guides often use fake reviews to climb the rankings.
She warns this is making it “virtually impossible for a new, legitimate brand of guidebook to enter the business right now.”
So, What Can Be Done?
Robin Pugh, executive director of nonprofit Intelligence for Good, advises small businesses to verify all contacts and confirm money is going where it’s supposed to.
Jasson Casey, CEO of Beyond Identity, believes the focus should shift to verifying people, not just content. His company offers tools that label video calls as “unverified” if something doesn’t add up.
At the end of the day, AI can help small businesses work faster and smarter. But the same technology is also making it easier for scammers to trick people.
As Etemadi put it, “Doing business online gets more necessary and high risk every year. AI is just part of that.”
The deepfake problem keeps changing, and there’s no easy fix. But small business owners can’t ignore online security anymore.
They need to double-check who they’re dealing with and help customers spot scams, too. Being extra careful online is now just part of running a business.