AI ‘Impostor’ Voice Scams Are On the Rise. How to Protect Yourself?

Summary

WSJ Tech News Briefing: AI ‘Impostor’ Voice Scams Are On the Rise. How to Protect Yourself? Release Date: April 16, 2025

Hosted by Victoria Craig for The Wall Street Journal

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Introduction

In the April 16, 2025 episode of WSJ Tech News Briefing, host Victoria Craig delves into two pressing issues in the tech landscape: the challenges faced by the Chinese e-commerce giant Shein amidst new U.S. tariffs, and the alarming rise of AI-powered imposter voice scams. The episode seamlessly blends in-depth reporting with expert insights, providing listeners with a comprehensive understanding of these topics.

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Shein’s Struggles Amid U.S. Tariffs

Shein's Market Dominance and Vulnerability

Shein, renowned for its ultra-affordable fashion and efficient supply chain across Asia, has cemented its position as a dominant player in the U.S. market. Victoria Craig introduces the topic by highlighting Shein's strategic advantage:

"Duty free shipping plus ultra cheap fashion used to equal a winning combination for China's e-commerce clothing giant Shein." ([01:29])

However, this formula faces significant challenges due to recent U.S. policy shifts.

Impact of New Tariffs

With the implementation of 12 new U.S. tariffs on Chinese goods and the termination of the de minimis provision—the exemption allowing small packages (valued at or under $800) to enter the U.S. without customs screening or tariffs—Shein's operational costs are set to rise sharply.

Shen Lu, a WSJ reporter covering technology and society in China, explains:

"De minimis is a trade provision that allows small packages, value at or under $800 to come to the US without custom screening, without paying tariffs... the Trump administration is closing the trade provision for China imports only." ([01:52])

Shein’s Strategic Response

In response, Shein has been proactive in diversifying its manufacturing bases beyond China, expanding into regions like Brazil, Turkey, and forging partnerships in India. Julie Jargan, another WSJ reporter, notes:

"Shein has been diversifying its supply chains over the past few years... but the main manufacturing base is still in China." ([02:31])

Despite these efforts, Shen Lu expresses skepticism about the feasibility of fully relocating production to the U.S., citing geopolitical tensions:

"It's harder for Shein because it has been in the center of U.S.-China geopolitical tension for the past few years." ([03:13])

Market Implications and Future Outlook

The removal of the de minimis provision is expected to lead to higher prices for U.S. consumers if Shein continues its current export strategies. While Shein's European market is burgeoning, the U.S. remains its most lucrative market with higher purchase frequency.

Shen Lu further elaborates:

"Analysts told me American consumers buy more and buy more frequently from Shein than European consumers." ([04:31])

The uncertainty surrounding the final trade policies, especially the impending May 2 deadline, leaves the future somewhat unclear. Both Shein and competitors like Temu face potential tariff increases that could push product prices upwards, impacting overall market dynamics.

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The Dark Side of AI: Impostor Voice Scams

Personal Encounter with a Scam

Transitioning from international trade to cybersecurity, the episode shifts focus to the rising threat of AI-driven imposter scams. Victoria Craig shares a personal anecdote to underscore the emotional and financial toll of such scams:

"A few years ago, I was sitting at work when the phone rang... it took my boss pulling the phone out of my hand to disconnect the call." ([06:07])

Understanding Imposter Scams

Julie Jargan, WSJ family and tech columnist, provides a detailed explanation of imposter scams enhanced by AI:

"There's this whole category of fraud called imposter scams... by using generative AI to create a voice that sounds just like that of someone you know." ([06:56])

Case Study: Linda Roan’s Experience

Jargan recounts the harrowing experience of Linda Roan from Colorado, who was deceived into wiring $2,000 under the guise of rescuing her daughter from a fabricated crisis:

"He said that her daughter had witnessed a drug deal... she ended up wiring $1,000 and then another thousand dollars." ([07:26])

Mechanics of Voice Cloning

The episode delves into the technological underpinnings that make these scams possible. Voice cloning requires as little as three seconds of audio to replicate a voice with approximately 85% accuracy, as per McAfee:

"All it takes is three seconds of audio to clone a voice with about 85% accuracy." ([08:35])

Moreover, the availability of voice-changing apps exacerbates the issue, allowing scammers to alter their voices to mimic different accents, genders, or ages effortlessly.

Prevalence and Impact

Imposter scams are alarmingly widespread. According to the Federal Trade Commission, these scams were the most reported type in the previous year, resulting in nearly $3 billion in losses before unreported cases are considered. The FBI has issued warnings about the increasing sophistication of AI-driven voice scams, emphasizing their growing prevalence and the deceptive realism they achieve.

"It's definitely on the rise, and the technology is making these things more believable." ([10:06])

Protection Strategies

To combat these threats, Jargan offers practical advice for consumers:

1. Establish a Code Word: Agree on a unique phrase with family members to verify identity during suspicious calls.
2. Verify Identities: Use alternative communication methods like texting or checking shared locations to confirm the caller's identity.
3. Stay Informed: Be aware of the latest scam tactics and remain vigilant against unexpected requests for money or personal information.

"You can ask what's the code word... if that person can't say it, then it's a pretty good tip-off that it's a scam." ([10:43])

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Conclusion

The April 16 episode of WSJ Tech News Briefing provides a thorough exploration of how geopolitical policies and advanced technologies intersect to shape the current tech environment. From Shein’s strategic maneuvers amidst U.S. tariffs to the emerging threat of AI-powered imposter scams, the episode equips listeners with valuable insights and practical tips to navigate these challenges. Hosted by Victoria Craig and enriched by expert reports from Shen Lu and Julie Jargan, the briefing underscores the dynamic and often precarious nature of the modern technological landscape.

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Produced by Julie Chang with deputy editors Chris Insinsley and Scott Salloway. For more insights, visit the Wall Street Journal’s Tech News Briefing.

Transcript

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[Tech News Briefing Host]

Get started, a heads up. We're going to be asking you a question at the top of each show for the next few weeks. Our goal here at Tech News Briefing is to keep you updated with the latest headlines and trends on all things tech. Now we want to know more about you, what you like about the show, and what more you'd like to be hearing from us. Our question this week is what would you like to hear from the tech headlines? If you're listening on Spotify, look for our poll under the episode description or you can send us an email to tnbsj.com now on to the show.

[Victoria Craig]

Welcome to Tech News briefing. It's Wednesday, April 16th. I'm Victoria Craig for the Wall Street Journal Chinese bargain app Shein made the US One of its biggest markets. Now its formula is crumbling under the weight of President Trump's tariffs. Then our family and tech columnist explains a voice cloning twist on a scam that's cheated Americans out of billions of dollars. But first, duty free shipping plus ultra cheap fashion used to equal a winning combination for China's e commerce clothing giant Shein. And thanks to a nimble supply chain across Asia, the company has been able to offer cheap prices to consumers in.

[Tech News Briefing Host]

The U.S. but all of that could.

[Victoria Craig]

Rapidly change thanks to the 12 punch of new US tariffs on Chinese goods and the closure of a popular exemption called the de minimis provision. WSJ reporter Shen Lu covers the intersection of technology and society in China. Shen Lu, walk us through this now closed loophole and how that could make it more costly for Xi'an to import goods to America.

[Shen Lu]

De minimis is a trade provision that allows small packages, value at or under $800 to come to the US without custom screening, without paying tariffs. And it's for products from all over the country, not just from China. But the Trump administration is closing the trade provision for China imports only.

[Julie Jargan]

And Shein hasn't been completely caught off guard by this in a way because it's been making moves to try to shield itself from actions like this. The impact of souring relations between the US And China.

[Shen Lu]

Yeah, Shein has been diversifying its supply chains over the past few years. Other than China, Shein is now also producing manufacturing in Brazil and in Turkey. They also have a partnership in India, but those are not their main manufacturing base. The main manufacturing base is still in China.

[Julie Jargan]

So obviously we know that the whole point of these tariffs is to try to encourage companies, force companies to move more manufacturing to America. Sheehan has talked about moving some of its manufacturing to the US but how likely is that looking?

[Shen Lu]

It's hard for every company to bring back manufacturing to the US and it's harder for Shein because it has been in the center of U.S. china Geopolitical tension for the past few years. Even if she an intends to manufacture in the US Somehow it's hard to imagine that China wouldn't put Shen under pressure for doing that.

[Julie Jargan]

Did you reach out to Shein for comment on all of this?

[Shen Lu]

Shein didn't reply to our request for comment.

[Julie Jargan]

So for customers, at least in the US for now, it could mean higher prices if Shein continues to export to America. But does it really need the US Market or can it look elsewhere? Can it look maybe to expand its businesses in Europe to make up for the American customers it could lose?

[Shen Lu]

Shein's Europe business has been growing very fast, faster than the US Market in the past year. So it is growing elsewhere and Shein sells to more than 150 countries. But the US is such a biggest market and people purchase more frequently in the US Than in Europe. Analysts told me American consumers buy more and buy more frequently from Shein than European consumers.

[Julie Jargan]

So could Amazon potentially be a winner in all of this? If Shein decides not to continue to pursue US Customers because the price prices are just too high, I don't think.

[Shen Lu]

She will stop pursuing the US Customers. It all depends on what the ultimate trade policy is because we are still weeks from May the second. Things may change after May the second. She and Temu would have to pay Trump's new tariffs on China plus the base tariff which could amount to near 150%. And so I mean we'll have to wait and see how much price they will add on their products. But Amazon is also subject to new China tariffs. Everybody is going to be more expensive.

[Victoria Craig]

That was WSJ reporter Shen Lu. Coming up, the dark side of AI how scammers are using our voices against the people we love. That's after the break.

[Unknown]

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[Victoria Craig]

Have you ever been scammed? Well, a few years ago, I was sitting at work when the phone rang. It looked like the call was coming from the Kansas City Police Department. I grew up in that area, so fearing the worst for my family, I picked up. The person at the other end told me there was a warrant out for my arrest and and to resolve it, I would need to buy gift cards and give him the redemption numbers. I knew it was fake, but despite my better judgment, I stayed on the line for nearly an hour. It took my boss pulling the phone out of my hand and pushing end for me to actually disconnect the call. Wall Street Journal family and tech columnist Julie Jargan has written about a new kind of scam that works in much the same way, but with the help of AI it can be much more. More convincing. So, Julie, tell us about how this type of scam works.

[Julie Jargan]

Yeah, so there's this whole category of fraud called imposter scams. And that's where someone impersonates somebody that you know, and in some cases they can actually do a really good job of that by using generative AI to create a voice that sounds just like that of someone you know or that can approximate the voice of someone you know. And these are cheap tools that are available online.

[Unknown]

And you talked to someone who fell victim to this kind of scam?

[Julie Jargan]

Yeah, I talked to this woman named Linda Roan who lives in Colorado. And one night she was at home making herself dinner and the phone rang and the call was from a local number. So she picked up and she immediately heard the voice of a young woman that she said sounded just like one of her daughters saying, mom, I'm okay, but something awful has happened and I need your help. This mother did what any mother would do and immediately went into sort of panic mode, wondering what has happened. Apparently the phone got taken away and a man came on the line and said that her daughter had witnessed a drug deal and screamed and scared away the buyers. And now he was out a lot of money and he needed her, Linda to wire him money to make things right. And if she didn't do that, he would not release her daughter, who he had pulled into the back of a van. She ended up doing a wire transfer online and wired $1,000 and then another thousand dollars. Finally, the whole thing was over and she called her daughter to see if she was okay and found out that this hadn't happened at all to her daughter. Her daughter was safe at home.

[Victoria Craig]

You know, I was shocked to see how easy it is to clone someone's voice. Just walk us through how this process works.

[Julie Jargan]

Yeah, so there's a couple of different methods that criminals can use. One is actual voice cloning, where you take a snippet of audio and you can create a likeness from that. All it takes is three seconds of audio to clone a voice with about 85% accuracy. And that's according to McAfee, which is a security software firm. And people have so much data online, especially young people that have social media accounts and are posting TikTok videos and YouTube videos. So there's a wealth of online audio from people. And so especially when these scammers are targeting people who have children of, you know, who are in their 20s and 30s and up, it's not hard to find voice clips of people that can be cloned. And then there's also a lot of voice changing apps that are free or inexpensive, that can be found on app stores. And it's not a voice clone per se, but it's a way to change your voice to sound like someone younger or someone with a different accent or someone of a different gender. So that's another way that people can easily create voices that might sound like a 25 year old in Texas or whatever.

[Unknown]

And like you say, if that happens, you become more vulnerable to a scam like this because they've got basic information about who you might be talking to. So you're more inclined to believe that.

[Victoria Craig]

It is who they say it is.

[Unknown]

On the other end of the phone. I'm curious, Julie, you report on tech and the growing use of AI. How did you come across this scam and how pervasive is it? How prevalent is it in society now?

[Julie Jargan]

It is rather pervasive. The Federal Trade Commission has identified imposter scams as the most reported type of scam last year. And people have lost. In total, these are just reported cases because a lot of people don't end up reporting that this even happens. But it's resulted in losses of nearly $3 billion. And the FBI has put out a warning about these kind of voice related scams using AI. It's definitely on the rise, and the technology is making these things more believable.

[Unknown]

So how can we, as consumers, as everyday people, protect ourselves against falling for this kind of scam?

[Julie Jargan]

So some of the things you can do are create a code word with family members, something that's unique but easy to remember with like your closest family members so that if anyone does receive a suspicious call, you can ask what's the code word? And if that person can't say it, then it's a pretty good tip off that it's a scam and you should just hang up. And you should always try to verify that you know who you're talking to on the phone is really that person. And there are a couple of ways to do that. In the moment, you can text that person. You can also if you share locations with your family members, you can check your phone and see where is that person. So there are a few different methods for trying to safeguard against this.

[Victoria Craig]

That was WSJ family and tech columnist Julie Jargan. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with deputy editors Chris Insinsley and Scott Salloway. I'm Victoria Craig for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.