Cybercriminals are now using AI to create deceptive, dynamic CAPTCHA pages that closely mimic legitimate ones, tricking users into believing they're secure while extracting sensitive data like passwords and financial information, warns a Trend Micro report

Cybersecurity researchers have flagged a worrying new trend where hackers are using artificial intelligence (AI) to create fake CAPTCHA verification pages that appear strikingly real. These AI-generated decoys are being deployed in large-scale phishing campaigns to extract sensitive user data, marking a dangerous evolution in digital deception tactics.

CAPTCHAs turned into bait by AI tools

CAPTCHAs — once trusted as basic online gatekeepers to block bots — are now being repurposed as traps. According to a report from cybersecurity firm Trend Micro, cybercriminals are leveraging advanced AI models to design deceptive CAPTCHA prompts that closely mimic legitimate security checks.

Victims are tricked into thinking they’re interacting with a secure site, only to be led further into a phishing funnel where they may unknowingly hand over personal data, passwords, or financial information. These AI-generated pages not only replicate the appearance of authentic sites but are also capable of adapting dynamically, making detection extremely difficult.

“Cybercriminals are moving beyond imitation. They’re now using innovation to outpace defenses,” a security analyst commented, emphasizing the growing complexity of these schemes.

AI scaling phishing to unprecedented levels

Unlike traditional phishing pages that were often riddled with red flags, these AI-powered attacks are clean, well-crafted, and capable of deploying at scale. Threat actors can now launch thousands of such websites in hours, adjusting in real-time to improve success rates and evade detection tools.

Researchers note that fake CAPTCHA pages have significantly increased phishing success, especially as real-time AI adjustments allow scammers to fine-tune their strategies based on user interaction.

Urgent call for unified cyber defense

With the line between real and fake security prompts growing ever thinner, experts are calling for urgent cross-sector collaboration. Regulatory bodies, tech companies, and cybersecurity organizations must align to develop smarter authentication tools and robust public awareness campaigns.

Meanwhile, users are urged to stay cautious—even when faced with seemingly routine verification screens.

"Today’s threats demand more than just caution—they require coordinated action," the report concludes.