[Air-L] New Publication: Algorithmic Scams - How AI and Social Media Enable Financial Fraud

[Edan Ring]

New cyber threat report by the Israel Internet Association (ISOC-IL) -
*Algorithmic Scams: How AI and Social Media Enable Financial Fraud*

In this new cyber threat report, ISOC-IL’s Internet Safety Hotline exposes
and analyzes a new wave of sophisticated financial scams that exploit
artificial intelligence (AI) tools and social media algorithms to deceive
Israeli users en masse. The report, based on hundreds of user reports to
the Internet Safety Hotline between 2023 and 2025, outlines how fraudsters
deploy deepfake videos, impersonate public figures, and exploit paid
advertising platforms - particularly Meta’s paid ads and publishing tools -
to target vulnerable users with hyper-personalized financial fraud
campaigns.

Download the full report here -
https://en.isoc.org.il/wp-content/uploads/2025/07/Algorithmic-Scams-2025-ISOC-IL.pdf

These "algorithmic scams" are not only more persuasive but also harder to
detect, abusing generative AI and social media features like dynamic ads,
ad cloaking, and weak to nonexistent verification processes and
local social media regulation. The report shows how Israeli users are led
from visually credible legitimate ads (often featuring Israeli celebrities
or politicians) to fake investment or product sites, where they are
manipulated into sharing personal and financial data or making direct
deposits they can never recover.


*The threat analysis identifies 4 main stages of the fraud campaign
"marketing funnel" -*
Fake Social Media Pages and Hijacked Accounts

Personalized Deepfake (AI) Videos Tailored to Fit Target Audiences

Fake Ads Promoting the Fraud Campaign to Target Audience on Social Media
Platforms

Redirection to Fraudulent External Landing Page and Collection of Personal
and Financial Data

*Download the full report here* -
https://en.isoc.org.il/wp-content/uploads/2025/07/Algorithmic-Scams-2025-ISOC-IL.pdf

*For more details and other publications* -
https://en.isoc.org.il/policy-papers/algorithmic-scams


-- 

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<https://en.isoc.org.il/policy-community/policy-papers/oct7-social/drowning-in-the-flood>
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Social Media Management of Harmful and Pro-Terror Content During the Gaza
War
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* Edan Ring** | VP Community Affairs** | *
*Israel Internet Association ISOC-IL*

054-6680085 | www.isoc.org.il | edan.ring at isoc.org.il <rani at isoc.org.il> |
איגוד-האינטרנט.ישראל <http://xn----zhcbgfhe2aacg8fb5i.xn--4dbrk0ce/>