How AI Is Powering Phishing Attacks—and Why Passwordless Is the Solution

Phishing attacks have always been a serious threat to online security for many platforms, but the rapid evolution of generative artificial intelligence (AI) found in highly accessible tools has escalated the danger to new levels. As financial institutions and online platforms expand their digital services to more customers, the need to address this evolving threat has never been more urgent.

In this article, we explore how AI is transforming phishing attacks in different ways, why the login process is a critical gateway to account security, and how FIDO Passwordless authentication can provide a more robust solution to best mitigate these risks.

How AI Is Fueling Phishing Attacks

Despite the convenience and applicability, AI has become a double-edged sword, empowering cybercriminals to conduct more efficient attacks with lower costs. Phishing—a common form of cyber attack where the bad actor begins with a message or email to communicate with the victim—has seen a dramatic surge in sophistication and frequency thanks to AI-powered tools.

The Numbers Speak for Themselves

Many researches have been conducted in many areas of the world to reveal that AI is feeding into the phishing fire.

• In 2023,79% of UK businesses that suffered a cyber attack identified phishing as the cause of it.

• Global phishing attacks have increased by nearly60% year-over-year, largely due to the availability of generative AI tools.

• 40% of phishing emails targeting businesses are now AI-generated, with 60% of recipients falling victim to these messages without realizing.

AI's Role in Fueling Phishing

There are many ways in which a fraudster leverages AI tools with, not limited to the common Generative AI services that the common users may use on a daily basis.

• Crafting Convincing Messages: Before, fraudsters were sending poorly written messages or had to invest in a native to help craft the content. AI now generates high-quality, grammatically correct phishing emails, mimicking native speakers and eliminating the red flags of poor grammar or awkward phrasing.

• Scaling Attacks: Automation scripts and codes allow fraudsters to launch phishing campaigns on a massive scale with minimal effort.

• Reducing Costs: By automating tasks, cybercriminals can cut costs significantly, avoiding the need for human writers or translators.

• Building Malicious Code: AI assists in creating injectable malware, bots, and scripts for large-scale, automated attacks without as much effort as before.

Why the Login Step is Critical

The login process acts as the main gateway to most user accounts. Securing this step is crucial because it protects all subsequent activities, including:

• Payments: ●Prevents unauthorized transactions on platforms/ applications storing bound payment cards.

• Personal Data: Protects sensitive information from being viewed, altered or extracted for malicious use.

• Account Privileges: Blocks unauthorized access to features or services tied to user accounts such as logging into third-party platforms.

Securing logins is not just about protecting a single step—it's about safeguarding the entire user journey.

The Bigger Picture: Phishing as the First Step

Phishing is often the starting point for larger fraud attacks often seen in online payment. Once fraudsters obtain user credentials, they most likely will resell them for financial gain, directly steal funds or sensitive information.

Beyond Phishing

The aftermath of successful phishing attacks includes financial losses, reputational damage, and weakened user trust in the attacked service platform/ provider. The stakes are high for businesses that are operating online, making comprehensive solutions essential.

A Radical Approach

If phishers rely on stolen credentials, eliminating the need for user credentials can effectively neutralize phishing. In simpler words, with no credentials, there will be nothing for cybercriminals to steal. This is where FIDO comes in.

HiRUST Veri FIDO: The Passwordless Solution

Veri FIDO is one of HiTRUST's leading solutions aimed at solving password-related problems for online payment and login authentication. The solution was built upon FIDO2 standards and HiTRUST's patented Device Intelligence (DiiA) technology.

What is FIDO technology?

FIDO (Fast Identity Online) is an authentication protocol that replaces traditional password-based authentication with Public Key cryptography. This revolutionary approach makes redundant the need to transmit or store user credentials on the public server (at the service provider), significantly reducing the risk of consequential account takeover from data breaches.

How FIDO Works

FIDO-enabled platforms authenticate users through personal devices they already own, such as smartphones or security keys. Instead of transmitting passwords, the system uses cryptographic keys stored locally to authenticate using different methods, though the most preferred is biometric. This means there's “nothing to phish.”

The Results Speak Volumes

Businesses adopting FIDO have reported:

• A significant reduction in phishing attempts.

• Improved user experience with faster, more secure logins.

• A decrease in password management efforts.

• Higher awareness of credentials and access management among users.

FIDO combines enhanced security with user-friendly authentication, addressing the twin challenges of fraud prevention and convenience in this digital-first era.

Enhancing FIDO with Device Intelligence

While FIDO minimizes phishing risks, its effectiveness largely hinges on understanding user behavior. Deploying FIDO without insight into user devices can still create vulnerabilities.

The Silver Lining: Device Intelligence

HiTRUST's Device Intelligence (DiiA) component complements FIDO by compiling and analyzing device-specific attributes, ensuring that abnormal behaviors such as changes in the user's location or the usage of fraud-sensitive services can be flagged and reviewed. Together, these technologies form a robust defense against phishing and unauthorized online account access and transactions.

Combining FIDO with Device Intelligence offers:

• Better fraud detection through device information profiling.

• More insights to support fraud management projects over time.

• Deeper understanding of evolving fraudulent behaviors and trends.

• Enhanced security without compromising the user experience.

Conclusion: FIDO is The Future of Authentication

With more advanced tools being released every other day, phishing attacks will definitely continue to evolve, but businesses can stay ahead by adopting new technologies like FIDO. By eliminating the reliance on passwords and legacy authentication processes, FIDO significantly reduces phishing risks and enhances user satisfaction on any device.

Protect your users and secure your platform with FIDO authentication TODAY!

Explore how HiTRUST's Veri FIDO can revolutionize your authentication strategy and combat phishing attacks more effectively than ever.