Our analysts used this framework to analyze the tools, tactics, and targeting strategies threat actors use in AI-driven social engineering as well as to anticipate how AI adoption will evolve. We also provide channel-specific recommendations to address gaps in traditional detection systems and user awareness training.
AI Adoption in Underground Services
While generative AI may have transformed social engineering attacks, our analysis through July 2025 shows that, in phishing, most threat actors still rely on familiar, cost-effective phishing-as-a-service (PhaaS) platforms. The recently dismantled LabHost PhaaS offered end-to-end phishing management for about US $200 per month. The new white paper explores the new PhaaS SheByte, a possible successor to LabHost, which allows users to create and generate templates with AI.
Recent underground offerings include jailbroken LLMs and prompts, AI-driven call center platforms for phishing, voice bots to elicit one-time passcodes for payment fraud and deepfake video generation services. Numerous threat actors now offer deepfake videos, fake documents, and media manipulation services for face-swapping, lip-syncing, voice-overs, facial manipulation and photo-to-video conversions, often for bypassing KYC controls.
Despite this diversity of offerings, our analysts found that AI is mainly used for content drafting and localization. There remain significant barriers to full AI-driven automation, including the cost and complexity of training and integrating AI models into attacker infrastructure and delivery systems. Meanwhile mass phishing, BEC and traditional social engineering remain highly effective against users with no awareness training.
AI-assisted vishing and voice deepfakes present unique challenges. Voice impersonation relies on social cues and psychological pressure, facing fewer digital obstacles than email phishing. Voice clones are employed to manipulate victims into transferring funds, divulging credentials or granting access to sensitive information — often under the guise of urgency or authority.
What is the Outlook for AI-driven Social Engineering?
Our analysts expect selective escalation rather than mass adoption of AI. Deepfake-enabled impersonation calls targeting executives and AI-voiced fraud against high-value targets will likely increase, along with a surge in synthetic media during elections, geopolitical events, and social debates.
Widespread adoption in cybercrime will depend on lower model hosting costs and the emergence of “state-of-the-art” AI kits akin to today’s PhaaS offerings. Until then, generative AI will continue to refine existing tactics for financially motivated actors.
Recommendations
To counter the growing threat of AI-powered impersonation, organizations should implement a multi-layered defense strategy:
- Strengthen Caller Verification: Require dual-channel verification for sensitive requests (such as payments, wire transfers, credential resets) received by phone or voicemail. This introduces a human or process checkpoint, blocking real-time deepfake voice scams by eliminating single points of failure.
- Retire Insecure Verification Methods: Discontinue outdated authentication methods such as “voice ID,” caller name recognition, and unverified video submissions for high-risk workflows. These mechanisms are now easily spoofed by AI-generated voices and videos.
- Protect Executive Media Assets: Watermark and digitally sign executive videos and public communications using standards like C2PA. This makes it more difficult for attackers to repurpose legitimate media for deepfake impersonation.
- Deploy Synthetic Media Detection: Integrate deepfake and cloned voice detection tools into inbound communication channels, such as help desks and talent acquisition. These tools can identify manipulated media and voice attacks before they impact business operations.
- Monitor for AI-Generated Text: Use content inspection and anomaly detection in email and chat to flag AI-generated language, such as overly formal tone or synthetic phrasing, which can indicate phishing or impersonation attempts.
- Leverage Threat Intelligence: Subscribe to threat intelligence feeds that track AI toolkits and impersonation campaigns. This ensures detection rules and awareness remain current with attacker tactics.
- Executive and Staff Training: Conduct regular drills for executives and staff using real examples of deepfake calls and AI-generated messages. Provide ongoing media literacy training to help all employees recognize synthetic media cues.
- Develop and Rehearse Response Playbooks: Create and practice runbooks for suspected AI impersonation incidents, ensuring rapid and confident responses to minimize confusion and contain threats.
By adopting these measures, organizations can significantly reduce their risk from AI-driven social engineering and impersonation attacks.
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