How to Protect Yourself from AI-Enabled Financial Fraud

Financial fraudsters have discovered a powerful new weapon: artificial intelligence. As AI technology becomes more sophisticated and accessible, criminals are leveraging these tools to create increasingly convincing scams.

“Fraudsters don’t have to work as hard as they did five or 10 years ago to get unauthorized financial information,” says Roxane Adams, fraud operations leader in a Forbright Bank’s Digital Banking Division.

To keep your finances safe, it’s important to understand these evolving threats and know how to protect yourself.

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AI refers to computer systems that can perform tasks that mimic human intelligence, such as learning, problem solving, and decision making. AI allows machines to analyze information, identify patterns, and act on circumstances with little human oversight.

Many people use the term AI to refer to generative AI, which allows computer systems to create new content like text, images, music, or voice recordings, based on learned patterns.

When used maliciously, AI tools can help financial criminals to trick consumers more effectively into providing personal financial information or authorizing access to their accounts. Some of the most common ways criminals are using AI for financial crimes include:

Voice Cloning and Deepfakes. It’s possible to use AI to clone voices with just a few seconds of audio. Scammers can call victims pretending to be their family members in distress, using synthesized voices that sound remarkably authentic, and request urgent wire transfers for fake emergencies.

Sophisticated Phishing Campaigns. With AI, fraudsters can create highly personalized phishing emails and text messages that are grammatically correct and tailored to specific individuals. Fraudsters may use AI to scrape social media profiles and public records to craft messages that reference personal details and make them appear legitimate. For example, a fraudster might use AI to undertake online research to effectively impersonate your boss and send you an email requesting financial information.

Fake Customer Service. Some criminals use AI chatbots to impersonate bank representatives and customer service agents. The bots might ask for account details, passwords, and verification codes while maintaining the illusion of legitimate customer support.

In many cases, consumers unknowingly get in contact with customer service bots by responding to a fraudulent text, Adams says. “Criminals will use AI tools to send out text messages saying there was a large purchase made on your Amazon account, for example,” she says. “If you respond to the text to say you didn’t make that charge, you may be chatting with a fake customer service agent.”
Instead of responding to an unexpected text message, Adams recommends checking your bank account or your purchase history with the retailer. You can also call your bank using the phone number listed on their website to verify the charge.

Synthetic Identities. Fraudsters also use AI to create entirely fake identities, complete with synthetic faces, fabricated backgrounds, and artificial social media histories. These fake identities can be used to open bank accounts, apply for credit cards, and conduct long-term financial fraud operations.

Forbright Bank is committed to customer care and security. While we maintain strict security protocols, we also encourage customers to take steps to protect themselves from evolving fraud threats. For example:

Verify Before You Trust. Be skeptical of unexpected urgent calls from family members claiming to be in distress without verifying the number that called. Hang up and call the person directly using a number you know is correct if you sense something is amiss. If a financial institution claims to contact you, call them back using the official number on your statements or their website, Adams says.

Scrutinize Communications. Be suspicious of urgent requests for financial information, even if they appear to come from legitimate sources. Banks and financial institutions will never ask for passwords, PINs, or full account numbers via email or text. When in doubt, contact the organization directly through official channels.

Strengthen Your Digital Footprint. Review your privacy settings on social media platforms and limit the personal information you share publicly. Fraudsters use this information to make their scams more convincing. Consider what details about your life, family, and finances are visible online.

“Be mindful of any sites where you’re entering your personal or financial information,” says Felicia Corbin, fraud analyst at Forbright Bank. For example, purchasing items through social media ads rather than by visiting an official retail site can sometimes result in fraud, she says.

Use Multi-Factor Authentication. Enable multi-factor authentication on all financial accounts. Use authenticator apps or hardware tokens for additional security.

Stay Informed and Trust Your Instincts. Keep up with emerging fraud trends and trust your gut feelings. If something feels off about a call, email, or investment opportunity, take time to investigate further. Legitimate organizations will understand your need to verify their authenticity.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.