Unleashed: Exploring the Rise of AI-Driven Crimes and Their Implications

A. Introduction

Artificial Intelligence (AI) has rapidly transformed the digital landscape, enabling automation, data analysis, and user interaction on a scale never seen before. Yet, as technology advances, so do the methods of cybercriminals.
The rise of AI-enabled and AI-assisted crimes represents a new frontier of digital threats—one that challenges not only cybersecurity experts but also the legal and ethical frameworks that govern our digital society.

B. Understanding Artificial Intelligence

AI refers to the simulation of human intelligence in machines programmed to think, learn, and make decisions. Its applications span across cybersecurity, data analytics, automation, and user experience. For instance, AI-powered security tools can detect unusual activity and prevent cyberattacks before they occur. Similarly, in automation and content generation, AI systems perform repetitive tasks with unmatched speed and precision. However, these same capabilities can be exploited for unlawful purposes.

C. Defining AI-Assisted Crimes

AI-assisted crimes are illegal activities facilitated, enhanced, or executed through artificial intelligence or algorithmic systems. These crimes employ algorithms, autonomous systems, or machine-learning models to exploit vulnerabilities in digital systems.Unlike conventional cybercrimes, AI-assisted attacks evolve dynamically, adapt to countermeasures, and are often difficult to trace.

Common Forms Include:

• Automated Phishing – AI-driven tools craft realistic emails mimicking trusted senders, adapting in real time to deceive recipients.
• Deepfakes – AI-generated videos or audio recordings impersonate real individuals, often for blackmail, misinformation, or identity theft.
• Financial Fraud and Market Manipulation – Automated or algorithmic systems execute trades designed to artificially influence market prices or exploit stolen financial data.
• Drone-Enabled Smuggling and Autonomous Attacks – AI-controlled drones or autonomous cyber-agents may transport contraband or exploit software vulnerabilities with minimal human intervention.
  

  ---

  D. Case Studies

  1. Deepfake Extortion (2019)

   In 2019, cybercriminals used AI-generated deepfake audio to impersonate a CEO’s voice, instructing a subordinate to transfer $243,000 to a fraudulent account. This case highlighted the potential of deepfake technology to deceive even experienced professionals.

  2. Automated Phishing Attacks

  A large-scale phishing campaign utilized AI to craft personalized emails that targeted employees of a major corporation. The AI analysed social media profiles and previous email interactions to tailor messages that significantly increased the success rate of the phishing attempt.

  3. Algorithmic Market Manipulation

   In 2020, a trading firm was found using AI algorithms to execute a strategy known as “spoofing” in the stock market. The AI placed large orders to create the illusion of high demand, then cancelled them once the market responded, allowing the firm to profit from the artificially influenced prices.

  4. Malaysia Case: Deepfake Scam Featuring the Prime Minister

  In 2025, Malaysian authorities detected a deepfake video falsely depicting Prime Minister Datuk Seri Anwar Ibrahim promoting a government-linked investment scheme. The video was not released by the Prime Minister, but was created and circulated by scammers using AI manipulation to lend credibility to fraudulent promotions. According to the Royal Malaysia Police Commercial Crime Investigation Department (CCID) and the Securities Commission Malaysia, such deepfake scams form part of coordinated online fraud networks exploiting public trust in high-profile figures.

  ---

  E. Implications of AI-Assisted Crimes

  1. Increased Sophistication of Cybercrimes

  AI enables criminals to personalize attacks, automate large-scale phishing campaigns, and create hyper-realistic fake content. Deepfakes erode public trust in digital media and can be weaponized for identity theft, blackmail, and misinformation campaigns.

  1. Challenges for Law Enforcement

   AI-assisted attacks often outpace traditional detection tools. The anonymity of cybercriminals, combined with the rapid evolution of technology, makes attribution and prosecution increasingly difficult. Law enforcement agencies face major obstacles such as limited budgets, shortage of AI-forensics expertise, and the need for cross-border cooperation.

  1. Privacy and Security Risks

   AI’s dual role in surveillance and cyberattacks poses grave privacy concerns. AI can exploit vulnerabilities for large-scale data breaches and enable invasive tracking without consent. Misuse of AI surveillance tools may even lead to political manipulation or repression.

  1. Economic and Financial Impact

   AI-enhanced financial crimes can destabilize markets and erode public confidence. Organisations face escalating costs from cybersecurity investments, reputational damage, and compliance obligations.Rising insurance premiums and global regulatory scrutiny further strain both corporations and governments.

  ---

  F. The Role of Lawyers in the Age of AI-Driven Crimes
  

  Lawyers, whether practising in corporate, criminal, technology, or regulatory fields, play a crucial role in shaping the legal response to AI-related threats. As the guardians of accountability and ethical governance, legal practitioners must adapt to a rapidly evolving digital landscape.

  1. Integrate and Update Knowledge

  Stay informed about developments in AI, data-protection, and cybersecurity law. Continuous learning is essential to remain competent in advising clients on emerging risks and compliance duties.

  2. Collaborate with Technologists and Policymakers

  Work alongside cybersecurity experts, forensic investigators, and policymakers to craft laws and enforcement strategies that bridge the gap between legal principles and technological realities.

  3. Advocate for Ethical and Responsible AI

  Promote transparency, fairness, and accountability in the design, deployment, and regulation of AI systems. Lawyers can champion ethical AI policies, ensuring that innovation aligns with human rights and the rule of law.

  4. Strengthen Regulatory and Enforcement Frameworks

  Support the development of robust legislative responses to AI-enabled crimes, such as amendments to the existing legislations to ensure the existence of a comprehensive legal framework to tackle the crimes related to the AI.

  5. Proactive Risk Management and Advisory

  Advise clients on preventive governance, implementing AI ethics policies, data-governance frameworks, and incident-response plans that anticipate AI-driven risks.

  ---

  Conclusion

  AI-assisted crimes are a significant and evolving threat, reshaping how societies approach law, technology, and security. As AI empowers both progress and peril, the global community must respond with innovation, regulation, and collaboration. Strengthening legal frameworks, enhancing law-enforcement capabilities, and fostering ethical AI practices are vital to safeguarding the digital future.
  In this evolving era, lawyers stand at the front line, not only as defenders of justice but as architects of a safe and ethical AI-driven world.

  
  This article is written by 

  Kokilah Kanniappan
  Senior Associate, Low & Partners