AI Hallucinations, Donkey Scams, and the DNA of a Fraud Fighter

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In this solo "vacation" episode, Karisse Hendrick checks in from the island of Maui to catch up on the latest in the fraud world before the chaos of conference season begins.

First, Karisse explores a hilarious yet alarming trend in artificial intelligence: AI Hallucinations. Reading from a recent article by Frank McKenna, she highlights how Google’s AI summary tool is confidently inventing absurd fraud schemes—from the "Donkey Scam" involving miniature donkey rescues to the bizarre "Clown Smile Scam" in the dentistry industry. While the examples are funny, Karisse discusses the serious integrity risks that arise when AI refuses to say "I don't know" and instead presents fiction as fact to analysts, journalists, and students.

Later in the episode, Karisse dives into a deeper, more personal topic: The difference between a Fraud Professional and a Fraud Fighter. She shares "core memory" stories—including taking a fraud emergency call from the middle of a family corn maze—to illustrate the relentless drive and "addiction to the hunt" that defines a true fraud fighter.

In this episode, we discuss:

1. The AI Information Gap: Why Google’s AI summaries are creating "fake" fraud types like hot dog fraud and snowman schemes.
2. Content Integrity: Karisse’s concerns about AI models using creator content without proper citation or compensation.
3. The Fraud Fighter Identity: How to recognize if you have fraud prevention in your DNA and why it matters when building a team.
4. Upcoming Events: Details on the Merchant Advisory Group, the Merchant Risk Council (MRC) in Vegas, and the first annual Merchant Fraud Alliance Conference in Chicago this October.

Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.

Connect with her on LinkedIn

She brings her experience, expertise, and extensive network of experts to this podcast weekly, on Tuesdays.