The Machine That Lies: How AI Is Supercharging Classic Scams

Artificial intelligence has rapidly become a cornerstone of modern communication, business operations, and creative industries. But its accessibility and sophistication have also equipped scammers with powerful new tools. No longer limited to clumsy emails riddled with typos or awkward phone calls, today’s fraudsters use AI to create convincing messages, mimic human speech, and personalize their attacks with frightening precision.

These are the same tactics we’ve seen for decades: phishing, romance scams, tech support fraud. What’s changed is their effectiveness. Artificial intelligence is enabling criminals to imitate trusted institutions and individuals with increasing realism, exploiting the trust we place in familiar voices, well-written language, and timely communication.

Smarter Tools, Smarter Scams

Phishing attacks have become more persuasive thanks to large language models. With tools similar to ChatGPT, bad actors can generate emails that mimic corporate tone, match cultural nuance, and pass grammatical scrutiny. Instead of the red flags we once relied on, AI-generated scams appear credible and legitimate.

Similarly, AI-generated text powers romance scams that build emotional connections over time. Scammers can maintain long conversations, react fluidly, and even express sentiment—making it harder for victims to spot inconsistencies. Check out my article ”When the Algorithm Becomes the Beloved” that showcases how people fall in love via text.

Scams typically follow a similar pattern: an attacker uses social engineering techniques to gain the victim’s trust, often exploiting human emotions or vulnerabilities. Once trust is established, they manipulate the situation to their advantage, asking for personal information or financial data. Finally, they use this information to commit fraud or identity theft. 

As artificial intelligence (AI) technology advances, scammers are increasingly using AI tools to create sophisticated and convincing fraud schemes. Reporting these scams promptly is crucial to help authorities investigate and prevent further victimization.

When reporting an AI scam, provide as much detailed information as possible, including:

• Description of the scam and how it was presented (e.g., phishing email, AI chatbot, deepfake video)

• Contact information or identifiers used by the scammer (phone number, email address, website URL)

• Copies or screenshots of communications or fraudulent content

• Any financial transactions or personal information shared

• Dates and times of interactions with the scammer

The message is clear: fraud is no longer a low-effort operation. It’s sophisticated, context-aware, and increasingly personalized. By reporting AI-related scams promptly and thoroughly, you contribute to the broader effort to combat evolving fraud tactics and protect yourself and others from harm.  If you encounter suspicious AI-driven scams, report them to the FTC, FBI IC3, and local authorities as soon as possible.

Old Tactics, New Delivery

According to the FBI’s Internet Crime Complaint Center (IC3), reported losses to cybercrime reached $12.5 billion in 2023. The Federal Trade Commission (FTC) also flagged the rise of AI-generated voice scams, which clone the voices of loved ones using short audio clips. Victims receive urgent phone calls from what sounds like their child, grandparent, or spouse—pleading for help or money.

Watch this clip for info on the Grandparent Scam.

These manipulations don’t require deep technical knowledge. Publicly available tools allow scammers to synthesize voice or text with minimal effort. In effect, the barrier to high-quality fraud has disappeared.

AI has pushed the cost of entry for fraud down to thrift‑store prices. A small crew can now orchestrate a polished confidence scheme with less than the monthly bill for high‑speed internet. For well under $500, a fraud ring can spin up persuasive deep‑fake voices, AI‑written lures, and resilient infrastructure, like functioning websites and testimonials.

This razor‑thin barrier to entry is why vigilance, not just better tech, remains our first‑line defense.

Staying Ahead: Recognizing the Pattern

The rapid evolution of technology—particularly artificial intelligence, deepfakes, and cryptocurrencies—is vastly outpacing the readiness of legal and educational systems. Legal institutions, struggle to legislate effectively against the exponential pace of tech innovation. AI regulations in the U.S. exemplify this with a fragmented state-by-state legislative response, while comprehensive federal legislation on deepfakes and crypto only now emerges despite years of proliferation.

In education, schools face similar hurdles: AI tools such as ChatGPT are becoming integral to classrooms faster than educators can form effective policies or receive necessary training. Traditional curricula development cycles lag significantly behind the pace at which technological skills become obsolete, leaving students underprepared for real-world challenges.

While technical safeguards are important, education and behavioral awareness are our strongest defense.Here’s what helps:

• Slow down. Scammers rely on urgency. If a message demands immediate action, take a moment to verify.

• Verify independently. Don’t respond to messages or calls directly. Contact the source using known, trusted information.

• Educate your circle. Family members, especially older adults, are often targeted. Share examples and best practices.

Staying ahead doesn’t require tech expertise. It requires discernment, conversation, and updated habits.  AI is increasingly becoming a powerful ally against scams and scammers. Here are several compelling examples of how we can fight back using AI:

1. Real-Time Fraud Detection in Banking

Banks like JPMorgan Chase and Citibank are deploying AI to detect fraudulent transactions instantly. AI models analyze millions of transactions per second, flagging unusual patterns, such as unexpected purchases or transfers, to stop scammers in their tracks before money is lost.

2. AI-Powered Call Monitoring

Platforms like Pindrop and Hiya use AI to detect fraudulent phone calls in real-time, identifying scammers based on voice patterns, call frequency, and known scam scripts. They protect victims, particularly elderly and vulnerable populations, from voice-based scams.

3. Email Scam Detection

AI tools like Google's Gmail Phishing Protection and Microsoft’s Defender for Office 365 use machine learning to identify phishing scams. They analyze emails for deceptive language patterns, malicious links, and sender anomalies to alert users before they become victims.

4. Social Media Scam Prevention

Platforms such as Facebook and Instagram use AI algorithms to proactively spot scam profiles and posts. By analyzing behavior patterns (like sudden mass messaging or unusual link-sharing), these systems can quickly ban accounts and remove scam posts.

5. Investment Scam Prevention

The Securities and Exchange Commission (SEC) employs AI tools to analyze trading patterns, social media data, and filings to detect potential Ponzi schemes, pump-and-dump scams, or suspicious insider trading—helping protect investors.

6. AI Chatbots Assisting Victims

AI-powered chatbots, like those developed by banks and financial institutions, guide potential scam victims through reporting processes, provide immediate assistance in freezing compromised accounts, and even offer personalized advice on how to secure their information in real-time.

7. Fake Profile Detection in Dating Apps

Platforms such as Tinder and Bumble employ AI algorithms trained on millions of legitimate and fake profiles to detect suspicious behavior, fake photos, or scammer tactics, helping to keep users safe from romance scams.

AI is transforming every sector, including crime. But while the tools of fraud have changed, the psychology behind it remains the same: urgency, trust, manipulation.

The more we understand the mechanics of these new scams, the better equipped we are to prevent them.  Governments and organizations worldwide are rapidly developing frameworks to govern AI responsibly. For example, the EU AI Act (2024) introduces strict regulations by classifying AI systems according to risk levels, requiring stringent compliance measures for high-risk technologies. On an international scale, the UNESCO AI Ethics Recommendation provides ethical guidelines endorsed by 193 nations, emphasizing human rights and transparency. Meanwhile, industry efforts such as the NIST AI Risk Management Framework offer practical, comprehensive guidance for organizations to proactively identify, assess, and mitigate potential AI risks.

AI developers, platforms, and industry leaders must urgently adopt comprehensive governance frameworks to combat AI-enabled scams. Regulatory standards such as Europe's groundbreaking AI Act and the FTC’s recent enforcement actions provide clear guidelines: systems must be secure by design, disclose AI-generated content, and enforce transparent accountability chains. Platforms also play a pivotal role, with responsibilities including robust deepfake detection, real-time monitoring of fraudulent activities, clear labeling of synthetic media, and effective user-education initiatives.

To strengthen these efforts, the tech industry should adopt stringent ethical standards, embedding principles like "safety by design" into AI development and forming cross-sector alliances to share best practices and threat intelligence. Companies must actively support victims through rapid takedowns, streamlined reporting channels, and dedicated technical assistance. Ultimately, collective action across technology, regulation, and industry responsibility is essential to protect individuals from AI-driven scams. Now is the time for stakeholders to collaborate and build an AI ecosystem that fosters trust and security while preserving innovation.