Robin Burge, Fraud Operations
Julia DeWeese, Cyber Intelligence
Artificial intelligence (AI) is making financial scams more convincing, personalized and sophisticated. Fraud itself is not new, but generative AI has reduced the skill and cost required for criminals to deceive their victims, putting investors — and their money — at risk.
As AI increases the effectiveness of impersonation, identity theft, investment fraud and social-engineering attacks, you can take these steps to help keep yourself safe.
5 types of fraud in the age of AI
Account takeover fraud
Criminals use AI to analyze data from breaches, generate convincing phishing messages and automate attempts to gain access to online accounts. Once an account is compromised, fraudsters may change contact information, bypass security controls or initiate unauthorized transactions.
Protect yourself by using multifactor authentication, unique passwords, and by monitoring account activity for unusual logins or changes to personal information.
Deepfake and voice-cloning scams
Fraudsters can clone voices and create realistic video deepfakes to impersonate family members, celebrities, government officials or other public figures. These scams are used to persuade victims to transfer funds, approve payments or reveal sensitive information. These scams work because they create urgency, fear and trust.
The best defense is to slow down and verify before acting. Contact a trusted family member or friend to confirm the caller’s story, especially if they’re urging secrecy. Requests to keep information from others are a common tactic used by scammers.
Romance and relationship scams
Be cautious of investment opportunities introduced through online relationships, especially when pressured to act quickly or transfer funds to unfamiliar platforms. Fraudsters may use AI-generated photos, videos and conversations to build trust over weeks or months. Victims are often encouraged to invest in fraudulent cryptocurrency or investment platforms. It’s best practice to talk with your financial advisor before agreeing to any investment.
Hyperpersonalized phishing and fraud at a massive scale
AI tools generate professional emails, texts and social media messages tailored to specific victims. This automation also enables criminals to target thousands of people simultaneously using chatbots, scripted outreach and AI-generated content. These messages often lack the spelling and grammar issues that traditionally signaled phishing attempts. Investment scams, cryptocurrency fraud and business-email compromise schemes have become more efficient. AI can help fraudsters mimic the writing style of executives, colleagues or trusted organizations. These messages may request wire transfers, gift card purchases, invoice payments or sensitive information while appearing authentic. These scams often use information gathered from social media, public records and data breaches to appear legitimate.
The best protection is to stay skeptical and verify requests before acting. Be cautious of messages that reference personal details, recent events or people you know, as scammers may use this information to gain your trust. Never click unexpected links or provide sensitive information without independently confirming the sender’s identity through a trusted method.
Synthetic identity fraud
AI can create realistic photos, counterfeit identification documents and digital personas. Criminals use these synthetic identities to open accounts, obtain credit or bypass financial institutions’ onboarding controls.
4 ways to keep yourself safe from AI-generated fraud
Protecting yourself from identity fraud requires monitoring your identity and limiting opportunities for fraudsters to use your information.
- Protect your personal information. Be cautious about sharing sensitive data such as your Social Security number, date of birth or financial account information unless absolutely necessary.
- Monitor your credit reports regularly. Review your credit reports for unfamiliar accounts, inquiries, addresses or other signs that someone may be using your information.
- Use strong account security. Enable multifactor authentication and use unique passwords for financial, health care and government-related accounts.
- Respond quickly to data breach notifications. If an organization reports that your information was exposed, take recommended actions immediately such as changing passwords and monitoring accounts.
How Edward Jones can help
If you believe you may be a victim of fraud, or if you have concerns about suspicious activity involving your personal or financial information, consider reaching out to your Edward Jones financial advisor for guidance.
Your financial advisor can help you review potential risks, discuss appropriate steps to protect your accounts and connect you with additional resources when needed. Seeking assistance early can help you make informed decisions and respond more effectively to potential fraud attempts.
Sign up for Carefull
As an Edward Jones client, you have complimentary access to Carefull, a digital protection platform that helps defend your financial life against fraud, scams and identity theft. Benefits include 24/7 credit monitoring, smart fraud alerts, $1 million identity theft insurance, stolen password detection and coverage for a trusted loved one. Enrollment takes just a few minutes — courtesy of Edward Jones.
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