Local startup launches AI-based scam detection solution

A Tampa-based entrepreneur has created an application that helps consumers detect increasingly sophisticated video, audio and photo scams in real-time.

Al Pascual, cofounder and CEO of Scamnetic, announced Tuesday that his artificial intelligence (AI)-based scam detection solution is now online. Criminals and imposters use similar technology to dupe people and businesses.

Scamnetic automatically scans virtual and physical communications and notifies users of potential fraud. It also verifies identities and provides explanations to aid decision-making.

“People don’t change their passwords,” Pascual said. “So, we’ve tried to make it super easy. If you’re the average person and you’re having a hard time figuring out if that PayPal email is real, just try to think a few years ahead. It’s going to be hard.”

Scamnetic’s patented software protects against deepfake video, audio and photos. Sophisticated scams use machine learning algorithms to replace a person’s face or voice without raising suspicion.

Clearwater-based KnowBe4, a global cybersecurity company, recently fell victim to a North Korean hacker who used deepfake media. Pascual said the ruse is common in romance cons propagated by dating apps.

“In real-time, they (perpetrators) talk into one screen, but the video you see is a totally different face,” he explained. “And this is a live conversation. They are doing this right at this moment and stealing money from people.

“This is not in the future – this is today.”

Al Pascual, CEO of Scamnetic.

Pascual launched Scamnetic in late 2023. He worked in the “broader security space,” primarily within the banking industry, for 20 years. He also started a tech company that credit reporting agency TransUnion eventually acquired.

Pascual noticed scams increasing during the pandemic. He said criminals had an “epiphany.”

Clients began asking for additional tools to combat a growing problem. “If you hear it enough, and there’s just nothing out there, then it’s a massive opportunity,” Pascual said.

“Plus, instead of protecting banks, like I have forever, I get to help people,” he added. “I’ve had personal relationships that have been affected by scams. And I’ve heard all the horror stories.”

According to the U.S. Federal Trade Commission, consumers lost over $10 billion to fraud in 2023. That represented a 22% year-over-year increase.

Scamnetic primarily serves enterprise businesses. Company officials then integrate the detection technology into their respective platforms.

Scamnetic’s Scan&Score feature automatically inspects emails, text messages, QR codes, online links, images and physical mail to discern risks. The software rates its findings on a one to four scale.

“The goal is to be in every communication channel to make your life easy,” Pascual said. “Because the bad guys get all the channels.”

Scamnetic also created an “identity-proofing” tool. Pascual said the tech first verifies a contact is an actual person and then ensures the online persona is legitimate.

Telecommunications providers can alert users when they suspect a call or text is spam. Pascual said that recently established software validates messages but not authenticity.

In addition, he said those tools frequently fail. “It was actually really helpful because we got to understand what they were trying to do, how they were doing it and why it wasn’t working.”

“So, instead of basically having a one-step process, which is what they do, we take up to 21 steps when analyzing any communication,” Pascual said. “It gives us a lot of opportunity to make an informed decision. We tell you exactly what we see.”

He compares the problem to a David versus Goliath scenario. The federal government does not mandate scam detection solutions or fraud reimbursement.

Consumers solely rely on “watch out for this” or “we will never ask you for that” messaging. Meanwhile, criminals now have advanced AI technology to evade human detection, even among the most vigilant.

“That’s why this is so important,” Pascual said. “Because there is no recourse, unlike a bad card transaction. If someone steals your money through a scam, it’s gone forever.”