Brian Roundtree, a serial entrepreneur from Seattle, was inspired to create aiShield after his parents fell victim to a common scam, where criminals posed as a family member in need of financial assistance. This led to the loss of $34,000 and a lack of reporting out of embarrassment. Reports indicate that similar scams and frauds amassed $10 billion in losses last year, with experts believing the actual number may be significantly higher due to underreporting by victims. A recent survey found that 1 in 10 U.S. adults had lost money to digital scams or cyber attacks, signaling a growing crisis of fraud in the country.
The rise of artificial intelligence and generative AI technologies has made it easier for scammers to deceive individuals through impersonation tactics. Older adults are often targeted due to their likelihood to answer the phone, their susceptibleness when alone, and their larger bank balances. Law enforcement agencies and policymakers are beginning to address the issue, with a non-profit organization launching soon to track victims and enable prosecutions. Public education campaigns aimed at raising awareness and a growing number of tech startups developing tools to protect individuals and prevent such crimes are also part of the solution.
AiShield, co-founded by Roundtree and Kevin Allan, utilizes generative AI to intercept fraudulent calls to cell phones and detect calls revealing sensitive information. The service screens incoming calls by asking unknown callers to identify themselves, allowing the customer to decide whether to answer. Additionally, aiShield monitors outgoing calls for red-flag phrases that may signal attempts to obtain personal or financial information, stepping in to warn the customer and inform the caller that the conversation is being monitored. The startup plans to operate as a mobile virtual network operator, using the cell network of a carrier but providing its own service.
The startup, which has built proof-of-concept technology and currently employs four people, is self-funded but seeking investments from angel investors. Roundtree and Allan have a history of entrepreneurship, having previously founded autoGraph and worked together at SNAPin Software. They hope to have a product ready for customers to try within the next 12 months. AiShield joins a growing number of companies focused on consumer fraud prevention, alongside others like Aura, Robokiller, and Seattle-based Hiya. Stokes, the director of Fraud Prevention Programs at AARP, is optimistic that awareness and concern around fraud are increasing, with initiatives like roundtables hosted by the White House addressing the issue as a serious crime that can have devastating impacts on people’s lives.
The prevalence of digital fraud and scams highlights the need for personal protection measures, especially for vulnerable populations like older adults. AiShield’s innovative use of generative AI to intercept and detect fraudulent calls is a promising solution to combat this growing issue. By identifying and warning individuals of potential scams, the startup aims to empower consumers to protect themselves from falling victim to financial losses and emotional distress caused by fraudulent activities. With continued efforts from both tech startups and public institutions, there is hope for progress in reducing the impact of digital fraud on individuals and communities.
