By now you must feel inundated by all the news being released daily about AI (Artificial Intelligence), some news reassures you that AI will help make life easier and less complicated for you, that it’s a good tool that can be used for varied and mundane tasks. But there’s also a dark side to AI. It’s not only the specter of AI automation making certain jobs nearly obsolete for humans, but AI is rapidly becoming a tool for scammers.

It appears that customers of financial service firms, particularly banks and credit unions, are fraudsters’ most popular targets for their nefarious AI schemes. Sadly, many of those scams are disproportionately directed at senior citizens. Fortunately banks, both big and small, are well aware of these AI threats and now have their own AI arsenal with which to battle these online criminals. One of the best ways that financial institutions are fighting AI fraud is to use AI to track your purchasing patterns (where you shop, what you buy, how frequently you shop) so that they can more easily spot any unusual charge or activity on your account.

It seems that new AI schemes pop up as fast as a criminal’s organic mind can think of one. According to a 2023 FBI internet crime report, the agency said that globally people over 60 lost $3.4 billion to fraud, and you can bet that AI had a lot to do with that statistic. By 2024 the number rose to $5 billion. Also, according to the FBI, the top three states whose residents registered the most fraud complaints were California, Texas, and Florida.

“AI allows criminals to create websites, emails, and impersonations that are startlingly authentic and believable,” writes the National Council on Aging. Popular AI scam methods include sophisticated voice cloning and deepfakes, altered photos and audio that can be modified to look or sound convincingly like any person that you know, even loved ones.

The latest AI scams, per NCOA, are:

“Grandparent” scams

In this scheme, a caller pretends to be a grandchild—sometimes using an AI-generated voice—who urgently needs money for an unexpected expense such as car repairs, overdue rent, or another financial emergency. The scammer typically pressures the victim to send money quickly, often through online transfers or gift cards. Learn how scammers also use boiler room tactics with AI to scam senior citizens.

Bank and financial scams

Scammers pose as representatives from a bank or investment firm and claim that your account has been compromised. They then ask for sensitive information such as passwords, account numbers, or other identifying details, which they use to access or steal funds. LEARN MORE 

Government impersonation scams

Callers claim to be from a federal agency, such as the Social Security Administration or the Internal Revenue Service. They may threaten loss of benefits or legal action if “unpaid taxes” are not immediately paid or if personal information is not provided. In reality, these agencies do not make unsolicited calls demanding payment; official communications are typically sent through the mail. LEARN MORE

Tech support scams

These scams often begin with an email or pop-up message claiming there is a problem with your computer or that it has been hacked. The message instructs you to click a link or call a number for help. Doing so can install malicious software that gives the scammer remote access to your device. LEARN MORE

Romance and friendship scams

Scammers create fake profiles on dating sites or social media—often enhanced with AI-generated photos or identities—to build trust with victims. After establishing a relationship, they request money for supposed emergencies, travel costs, visas, or medical bills, frequently asking that funds be sent through online payment services or overseas accounts. LEARN MORE

 Here are some tactics you can use to avoid AI scams

American Express gave its customers the best advice: three salient words, “Pause, Think, Verify.” Keep a detailed accounting and record of every account you have, and if a caller isn’t someone you know or recognize (and that includes anyone who sends you a random email), do not answer the phone and do not respond to the email — and especially do not click any links within the email. If a caller leaves a voicemail, listen to the message later then delete it (and be sure to add the number to your blocked numbers list).

About those emails, err on the side of caution and just don’t open them at all. You should also make sure that your email software or app has a setting that keeps embedded images from being downloaded. Again, do not click any links in the body of an email that you’ve chanced to open. If you want to be assured that nothing is amiss with an account, just visit the institution’s website directly and log into your account or contact customer service to verify that your account has not been compromised.

Also, should you answer one one such phone call, never engage in lengthy (or brief) conversation of any kind with the “person” on the other end. Never provide passwords or your PIN, or any other personal information. Scammers want to draw you into a dialogue so that they can both phish for information and possibly capture your voice to use in another scam. The prudent thing is to not pick up the call, but if you do, hang up immediately.

Lastly, keep your passwords up to date. Also, ensure your passwords are anywhere from 12 to 20 characters long. An easy, quick, and safe way to create new and complicated passwords is to use the Norton Utilities Password Generator. You should also monitor all of your online accounts regularly for any suspicious activity, then when something doesn’t look right or doesn’t add up you can report the anomaly to the appropriate people.