TULSA, Okla. — Artificial intelligence is making scams more convincing than ever before, with fraudsters using sophisticated deepfakes that look and sound incredibly real.
No one is immune from being targeted by these evolving schemes that cost consumers billions of dollars each year.
The rise of AI-generated scams makes it critical to change how we need to protect ourselves, especially when it comes to safeguarding our finances. Understanding the warning signs and knowing how to respond can be the difference between keeping your money safe and falling victim to a costly fraud.
The billion-dollar problem
Scammers are increasingly turning to AI because it's profitable.
"It's a very lucrative business, you know, in 2024 alone, with the data we have, it's cost about $12.5 billion to consumers that have gotten scammed, and so because it's a lucrative business, they're gonna continue to apply the pressure and continue to invent new ways of trying to target people, unfortunately," said Derrick Green from Bank of America.
Red flags to watch for
Major warning signs indicate you're likely dealing with a scammer:
- Pressure for account access: Legitimate institutions won't push you to provide passwords or other access information to financial accounts through unsolicited contact.
- Demands for secrecy: Scammers often insist you don't tell family or friends about their requests. This isolation tactic helps them maintain control over the situation.
- Urgency - whether in writing or by phone, there is pressure to act on what they're asking immediately before you have time to think things through.
How to protect yourself
Several key strategies can help safeguard your finances:
- Be cautious and suspicious of emails and texts claiming to be from your financial institution.
- Don't click on links or download attachments
- Use strong PINs and security questions for account access, and whenever possibl,e require two-factor authentication to access your accounts
- Familiarize yourself with your bank's legitimate security policies
- Enable push notifications on your mobile banking app to receive alerts about suspicious activity
- Keep your contact information updated with your financial institutions
Don't stay silent
If you suspect you've been targeted or fallen victim to a scam, don't feel ashamed or embarrassed. These are sophisticated attacks designed to fool people.
"Silence is their number one weapon, to be honest with you. If they can keep you silent, the fewer people who know about their tactics and what they're trying to do, the more people they can take advantage of. So don't be ashamed," Green said.
When in doubt, verify independently
If you're ever unsure about who is contacting you:
- Hang up the phone
- Don't reply to emails or texts
- Contact your financial institution directly using its official phone numbers, website or app
- Ask them to verify whether they initiated the contact
In most cases, your bank will confirm they didn't request the information – meaning you were dealing with a scammer.
Additional protection tips
Spot impostors: Be wary of anyone posing as a trusted figure claiming there's an urgent issue requiring immediate action. Common scam scenarios include claims of fraud on your account requiring you to move money, unexpected fees, or requests to withdraw cash and deposit it into a "new" account they provide.
Stay vigilant against phishing: Never click links in suspicious emails, even if they appear legitimate. Always navigate to company websites by typing the URL directly into your browser or using official apps.
Use security features: Protect your mobile banking apps with strong passwords, fingerprint recognition, or facial recognition technology.
Know your bank's resources: Understand how to report lost or stolen cards and the proper channels for reporting fraud. Most banks offer protection for fraudulent transactions when claims are reported promptly.
Remember, scammers constantly reinvent their approaches, but their core tactics remain the same. Staying informed about these red flags and verification procedures is your best defense against AI-enhanced fraud schemes.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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