AI Best Practices: Protecting Your Finances

IN THIS ARTICLE

• AI Phishing
• The Rise of Deepfakes
• Spotting a Deepfake
• Protecting Yourself from AI Scams
• Key Takeaways

Artificial Intelligence (AI) refers to a rapidly evolving technology that enables machines to analyze information, recognize patterns, and make decisions with minimal human intervention. It works by learning from large amounts of data and improving over time. You may already interact with AI every day through things like voice assistants, GPS navigation apps, or personalized shopping suggestions. In the future, AI is expected to play an even bigger role by simplifying daily tasks.

But while AI brings convenience, it also gives cybercriminals powerful new tools. According to the FBI’s 2025 Internet Crime Report, Americans lost nearly $21 billion to cybercrime, with AI-related complaints accounting for over 22,000 reports and nearly $893 million in losses — the first time AI fraud was tracked as its own category. For investors, understanding these threats is an essential part of protecting your financial future.

How Cybercriminals Use AI for Phishing

According to the FBI, cybercriminals are becoming more sophisticated in their attacks by leveraging AI to conduct social engineering attacks. Cybercriminals can now use these tools to create scams uniquely tailored to specific victims, removing common phishing tell-tale flags while faking familiar voices, faces, and mannerisms. Overall, this increases the chances for successful attacks that lead to financial fraud and data theft.

Cybercriminals use AI to analyze vast amounts of public data to craft emails that include specific details about the victim, making the phishing attempt seem much more relevant and legitimate. Learning to recognize and avoid investment scams is more important than ever. The potential dangers of AI-powered phishing include:

• Increased success rate: Highly personalized phishing attempts are more likely to trick users into clicking malicious links or providing sensitive information.
• Difficult to detect: AI-generated phishing emails can appear very similar to legitimate communications, making them harder to identify as fraudulent.
• Wider reach: AI allows cybercriminals to automate phishing attacks, helping them target a larger pool of potential victims.

AI in Voice and Video Scams: The Rise of Deepfakes

AI is increasingly being used in voice and video scams, leveraging advanced tools to deceive victims into committing financial fraud and stealing sensitive information. AI tools are used to create realistic fake videos (deepfakes) or audio by mimicking a person’s voice, facial expressions, and mannerisms. Cybercriminals use these to impersonate trusted individuals such as friends, family members, or celebrities.

Global deepfake fraud losses have surged to $3.7 billion, with $2.5 billion in 2025 alone and $764 million already recorded in the first half of 2026. Social media is the largest origin point, accounting for 47% of losses, driven largely by criminals using deepfakes of public figures to promote fraudulent investment schemes.

Here are some potential dangers of deepfakes:

• Increased realism: AI-generated content is often indistinguishable from real audio or video, making it harder for victims to detect scams.
• Erosion of trust: The ability to replicate voices and videos undermines trust in digital communication, as people can no longer rely on what they see or hear.
• Targeted exploitation: Scammers can use AI to target vulnerable individuals, such as seniors or those unfamiliar with technology, increasing the likelihood of success.
• Financial and emotional harm: Victims may lose money, sensitive information, or suffer emotional distress from being deceived by someone they “trust.”

How to Spot a Deepfake

As deepfakes become more convincing, protecting your personal information online starts with understanding which indicators to watch, including:

• Inconsistent facial features: Odd or unnatural blinking, or unnatural eye and/or mouth movements.
• Mismatching lighting: Uneven skin tones, strange shadows, and/or unnatural lighting.
• Audio quality: Unnatural or robotic voices.
• Lip syncing: Lip movement does not match the audio.

How to Protect Yourself from AI-Powered Scams

You don’t need to be a technology expert to defend yourself. A combination of smart habits and the right tools can go a long way. Protecting your computer from cyber threats and securing your mobile devices are foundational steps every investor should take.

These tips can help you protect yourself from AI-powered scams:

• Stay informed: Keep up with the latest scam trends and tactics used by cybercriminals.
• Use strong passwords and MFA: Create complex passwords for each account and enable multi-factor authentication to add an additional layer of security and verification.
• Be skeptical: Avoid clicking on links or downloading attachments from unknown sources.
• Create a “safe word”: Establish a family “safe word” as additional verification for urgent situations. This can help identify deepfakes.
• Be cautious of urgent requests: Scammers often create a sense of urgency, so take a moment to assess the situation before acting.

Key Takeaways

With the emergence of AI, cybercriminals have made it a point to take full advantage of these tools to create sophisticated cyberattacks that are increasingly difficult to detect. While AI-based cyberattacks are a growing concern, they are not insurmountable. By combining technology, education, and vigilance, you can protect yourself from falling victim to these attacks. The key is to remain proactive, skeptical, and informed in this evolving digital landscape.