According to authorities, a scammer in China employed artificial intelligence (AI) to deceive a businessman and swindle him out of millions of yuan.

The victim, identified as Guo, received a video call from an individual who appeared and sounded like a close friend.

However, unbeknownst to Guo, the caller was a con artist utilizing advanced AI technology to alter their face and voice.

The scammer successfully posed as Guo’s trusted friend and manipulated him into transferring 4.3 million yuan ($609,000) from his company’s bank account.

The fraudster concocted a story, claiming that another friend required the funds to fulfill the guarantee for a public tender. Guo, believing he was helping a friend in need, provided his personal bank account number.

The scammer then sent a fraudulent payment record, falsely indicating that an equivalent amount had been wired to Guo’s account.

Without confirming the receipt of the money, Guo transferred two payments from his company account, totaling the requested amount.

Only later did Guo realize his mistake when he contacted his actual friend, who had no knowledge of the transaction.

Guo promptly reported the incident to the police, who informed a bank in another city to halt the transfers.

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Fortunately, Guo managed to recover 3.4 million yuan of the stolen funds. Efforts to retrieve the remaining amount were ongoing, but the article did not disclose the identities of the perpetrators.

This incident sheds light on the potential risks associated with cutting-edge AI technology. The introduction of OpenAI’s ChatGPT, a chatbot that mimics human speech, has garnered attention in the context of AI’s capabilities and vulnerabilities.

China, aiming to become a global AI leader by 2030, has witnessed the rapid development of similar products by companies like Alibaba, JD.com, NetEase, and ByteDance.

While ChatGPT is not accessible in China, Chinese users have sought ways to use it by employing virtual private networks (VPNs) for educational purposes, such as writing essays or preparing for exams.

However, there have been instances of its exploitation for malicious intents. Recently, in Gansu province, authorities took action against an individual who utilized ChatGPT to fabricate a false news article about a fatal bus crash, which quickly spread on social media.

Recognizing the risks posed by AI technology, China implemented a law in January to regulate deepfakes, prohibiting their use for producing, publishing, or disseminating false news.

Additionally, a draft law proposed by Beijing’s internet regulator mandates a “security assessment” for all new AI products before their release to the public.

These measures aim to mitigate the misuse of AI and ensure its responsible application in society.