Aggressive. Effective. Results.

How AI and white collar crime intersect

On Behalf of | Mar 14, 2024 | White Collar Crimes

Most of the time, the law tends to lag a bit behind the times, especially when it comes to technological advancements like artificial intelligence (AI) programs. 

While AI was greeted very cautiously by many, it appears to be here to stay – and the Justice Department (JD) has taken note unusually fast. 

What’s going on with AI and the JD?

The Deputy Attorney General said that the JD intends to look closely at how a company manages the risks of AI misuse from within to limit the possibility of white-collar corporate crime. The JD also intends to seek enhanced sentences for criminals who use AI, under the theory that their behavior poses “an especially serious risk” to society.

AI has been used in various criminal activities, such as:

  • Insider trading: AI algorithms are constantly being employed to analyze vast amounts of data to predict market trends and assess potential investments – and that’s perfectly legal. However, AI can also be used to artificially manipulate market prices through high-speed trades and large orders to the detriment of others and the benefit of a few.
  • Phishing campaigns: A lot of white collar crimes involve a little electronic “phishing” to bypass security software and crack passwords. AI has made it much easier to do those sorts of things on a large-scale basis.
  • Money laundering: Money from illegal sources has to be “cleaned up” and made to look legitimate before it can be used, and AI has been used to both move money faster and through increasingly elaborate methods, making it even more difficult for the authorities to trace.
  • Deepfakes: It’s increasingly difficult to tell a “deep fake” photo from a real one, and AI has already been used to create realistic videos that are designed to manipulate others for both causes and financial gain.
  • Tax evasion: AI can also be used to manipulate financial records and transactions, through the use of fake invoices and other altered data.

With all the excitement around AI technology, it is easy to get carried away with what you can do – without considering if you should do it. If you’re in legal trouble related to your use of AI, invoke your right to remain silent until you have a chance to seek legal guidance.