AI-powered scams: The new face of fraud

By: The Roseville Police Department

Artificial intelligence (AI) is transforming the way we live and work, but it is also giving criminals powerful new tools to commit fraud. Scammers are now using AI to create highly convincing impersonations, making it harder than ever to tell what’s real and what’s fake. In 2024 alone, U.S. consumers lost more than $16 billion to cyber-enabled crimes, according to the FBI Internet Crime Complaint Center. Experts warn that AI-generated scams are expected to be one of the most significant fraud threats in 2026.

Unlike traditional scams, which often feature obvious red flags such as poor grammar or suspicious email addresses, AI-powered fraud is far more sophisticated. Criminals now rely on voice cloning, deepfake videos, and AI-generated messages to create urgent and emotional situations designed to trick victims. With just a few seconds of audio from a social media post, scammers can clone someone’s voice so accurately that it may sound indistinguishable from the real person.

Victims might receive a frantic phone call from what sounds exactly like a loved one claiming they have been injured or arrested and need money immediately. Others may receive a realistic video call that appears to be from a company executive requesting an urgent wire transfer. AI can also generate highly polished phishing emails that look identical to legitimate messages from banks, delivery services, or government agencies.

Common AI-generated scams

Voice cloning (Grandparent or relative scam)
Criminals clone a family member's voice using short audio clips found online. Victims receive a panicked call asking for immediate financial help.

Deepfake video calls
Scammers create realistic video calls impersonating business leaders, coworkers, or family members to authorize financial transfers or request sensitive information.

AI-powered phishing
Generative AI produces professional-looking emails and text messages in multiple languages that bypass spam filters and appear to come from trusted organizations.

Social media impersonation
Fraudsters duplicate social media profiles and use AI chat tools to hold convincing conversations with friends or followers, often promoting fake investment or cryptocurrency schemes.

Chatbot impersonation
Fake customer service bots trick victims into providing login credentials, account numbers, or financial details.

How to Protect Yourself

• Create a secret code: Establish a family or workplace “safe word” to confirm identities during emergency calls.

• Verify the source: If you receive a frantic message or call, hang up and contact the person directly using a known phone number.

• Slow down: Scammers rely on urgency and panic to pressure victims into quick decisions. Take time to verify before sending money or sharing information.

• Avoid clicking links: Instead, visit official websites directly.

• Inspect details carefully: Look for subtle clues such as unnatural pauses in voices, unusual requests, or strange phrasing.

• Report suspicious activity: If you believe you’ve been targeted, report it to the Federal Trade Commission or the FBI Internet Crime Complaint Center.

AI scams are evolving rapidly and are designed to bypass traditional warning signs by making fake interactions appear incredibly authentic. In today’s digital world, seeing and hearing are no longer proof that something is real. Awareness, skepticism, and taking a moment to verify unexpected requests can be the difference between staying safe and becoming the next victim of AI-powered fraud.