The advent of artificial intelligence (AI) has not only revolutionized various aspects of industry but has also introduced sophisticated challenges in the realm of financial crime. Former Deputy Attorney General Lisa Monaco previously emphasized the need for the Department of Justice (DOJ) to adopt a proactive stance towards AI-related offenses, an area which demands heightened scrutiny given recent trends. This call to action resonates as crimes leveraging AI continue to evolve and become more complex.
Notably, AI has been at the center of a surge in financial fraud cases, specifically in the form of “pig butchering” scams. Perpetrators utilize AI to create digital personas that deceive victims into fraudulent investments, often involving cryptocurrency. These scams have become increasingly prevalent; the FBI reported over 4,300 such schemes in 2024 alone, with losses surpassing other internet-related crimes (Bloomberg Law).
The potential for AI-fueled cyberattacks represents another crucial enforcement concern. Technologies such as Agentic AI, which can autonomously execute tasks, enable hackers to craft sophisticated and targeted cyber intrusions (Bloomberg Law). The DOJ has already been active in this arena, having prosecuted foreign nationals involved in significant ransomware and cryptocurrency hacking cases.
In addition to these financial and cyber threats, there has been a troubling increase in AI-generated child sexual abuse material, prompting federal prosecutors to utilize existing obscenity laws for enforcement. Recent cases include federal indictments for producing explicit images using AI models and AI-modulated real child images (DOJ).
The phenomenon of “AI washing,” where entities misrepresent their AI capabilities, also warrants attention. Both civil and criminal actions have been pursued to combat deceptive claims. For instance, the Securities and Exchange Commission (SEC) has taken steps against firms falsely stating AI usage, while the DOJ’s recent case against a former MoviePass CEO underscores these efforts (SEC) (DOJ).
While the DOJ’s current leadership has yet to delineate a comprehensive strategy addressing AI-centric crimes, the ongoing developments signify an inevitable escalation in both scrutiny and enforcement actions. It is imperative that both private and public sectors remain vigilant as AI continues to offer new avenues for exploitation and crime.