With consumer spending and identity fraud both projected to increase this holiday season, managed IT provider Bit-Wizards advises people to exercise caution when using the internet for personal and professional purposes. In its 2024 Holiday Report, global payments technology company ACI Worldwide anticipates a 12% increase in transaction volume over the 2024 holidays. With overall fraud up 3% and synthetic identity fraud up 26%, ACI predicts that artificial intelligence (AI) will make these tactics more agile and less detectable.

AI poses many questions and benefits for those who learn how to use it. Unfortunately, bad actors do the same but often exploit those advantages with malicious intent. AI-fueled identity theft is increasingly common, with chatbots and other programs equipping hackers with the ability to craft deepfakes of a person's voice or likeness, write copy for phishing emails, and even create forged documents. With the increase in holiday shopping urgency and volume, the risks of being impacted by identity theft are considerably higher than usual.

"Most people are caught up in the frenzy of holiday shopping lists, family schedules, and other details that make them less vigilant against potential threats disguised as prize giveaways or billing statements," says Brian Schlechter, Director of IT at Bit-Wizards. "Hackers leverage that aspect as part of their social engineering efforts, wreaking havoc for their victims while pulling off successful attacks."

Bit-Wizards recommends these four tips for combating AI-powered identity theft attempts:

1. Use AI to your advantage when possible
2. Follow strong password security practices
3. Monitor for traditional signs of identity theft
4. Inform and educate yourself and others

Identity theft and other common cyberattacks are issues businesses should prepare for year-round, but that's easier said than done. Instead of doing so on their own, business owners can partner with a managed service provider (MSP) to comprehensively fortify their cybersecurity posture. With the Bit-Wizards Managed IT Services (MITS) team's multilayered approach to security, businesses can rest easy knowing thorough, proactive measures shield their employees and customers.