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AII-1001-89781
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Microsoft Reports Rise in AI-Powered Fraud and Deepfake Scams

Microsoft reported a surge in AI-powered scams including deepfake voice calls, video interviews, and fake job postings, with the company blocking $4 billion in fraud attempts and 1.6 million fake signups hourly. Scammers use AI to create realistic but fraudulent content targeting job seekers and consumers, with Microsoft introducing fraud-prevention measures and advising users to verify employer legitimacy and use secure payment methods.

16 April 2025 Β· Microsoft Β· Fraud, scams and manipulation
16 April 2025
AII-1001-89781
Quick facts
Category
Fraud, scams and manipulation
Country
United States
Date
16 April 2025
Drafted by
Raidu Incident Detection

What happened

According to Microsoft's Cyber Signals: Issue 9 report published in April 2025, scammers are using AI-generated deepfake voice calls, video interviews, and phishing to conduct fraud. Microsoft reported blocking $4 billion in fraud attempts and stopping approximately 1.6 million fake bot signups per hour.

Scammers are using AI to create realistic but deceptive job postings, fake e-commerce websites, fraudulent profiles with stolen credentials, and AI-driven email campaigns. Deepfake video interviews can display odd facial expressions or speech delays, and voice clones can be created from just seconds of audio.

Reported impact

Job seekers are being targeted with fake job offers and deepfake video interviews that request personal or financial information. Consumers are vulnerable to fraudulent e-commerce sites that use AI-generated product descriptions and reviews to appear legitimate.

Kathmandu, a New Zealand clothing and outdoor brand, was targeted by an imposter shop on Facebook. ASB reported a share trading platform scam using text messages and invitations to connect on social platforms including WhatsApp.

Index analysis

Microsoft introduced a "Fraud-resistant by Design" policy in January requiring product teams to perform fraud prevention assessments and implement fraud controls as part of the design process. Microsoft is adding scam alerts to Edge and Outlook to protect users.

Governance controls

Microsoft said consumer awareness and vigilance is the most powerful tool to tackle scams, backed with technological solutions. Users are advised to verify employer legitimacy through official websites or platforms such as LinkedIn or Glassdoor, avoid upfront payment requests, use secure payment methods with fraud protections, and cross-check domain names and reviews before clicking on social media ads.

Classification

Category
Fraud, scams and manipulation
Industry
Digital security
Country
United States
Harm status
Actual harm
Intent
Intentional
Timing
Unknown
Harm types
Economic or property
Harmed
Business, Consumers
Failure modes
Deepfake video, Manipulation or dark pattern, Voice clone
AI systems
Microsoft fraud detection systems

Sources and evidence

Sources not yet published

This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.

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