Prefer to watch? Click here to watch and listen on YouTube.

As artificial intelligence (AI) becomes more prevalent in daily life, scammers are using it to their advantage. AI-enhanced schemes are faster, cheaper, more advanced, and more personalized, at a time when fraud is already widespread. According to Consumer Reports, Aspen Digital, and the Global Cyber Alliance, nine out of ten Americans have been targeted by a scam or cyberattack.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® and Eric Hogarth, CFP® share five ways to protect yourself, your money, and your loved ones from AI-powered scams.

1. Exercise Skepticism

One of the most important ways to stay safe is to maintain a healthy sense of skepticism. With the rise of AI, scammers have become far more sophisticated. They can create messages that appear professional and convincing, as well as mimic the writing styles of real people.

Another challenge is how constantly inundated we are with communication. Through service providers, retailers, and social media, we share personal information in countless ways. So, when you do receive messages that create a sense of urgency or ask for sensitive information, take a moment to pause before clicking a link or responding.

Want to learn how to use AI safely while protecting your personal data? Get your free Aging with AI guide by texting “AI” to 800-757-0436.

2. Verify the Source

Another key defense is verifying the source of the communication. Scammers frequently request sensitive information such as birth dates, Social Security numbers, and financial account details. Rather than responding right away, confirm whether the sender is legitimate.

One way to do that is to contact the company or individual directly using their official phone number or email address on their website. Verifying this information first can provide peace of mind and help you avoid costly mistakes.

3. Watch Out for Deepfakes

With advances in AI comes the growing threat of deepfakes. Scammers can create videos, audio recordings, and images that appear completely authentic. This deceptive content may even present as someone you know or a company you’ve done business with.

Remaining vigilant when viewing online content is more important than ever. In today’s world, taking information at face value can be risky. Keep a healthy level of skepticism, especially when someone asks you for personal information or a financial transaction.

4. Strengthen Your Online Security

Strengthening your online security is another critical step to protecting yourself from fraud. Using the same password across multiple accounts can increase your risk of a cyberattack. If scammers compromise one account, they can quickly access others as well.

Creating unique, strong passwords and implementing two-factor authentication can go a long way toward protecting yourself online. Cyberattacks often become a stressful and extensive effort to resolve, making these preventative measures well worth the effort.

5. Report Suspicious Activity

If you encounter suspicious activity or believe you’ve been a target of a scam, reach out to a trusted source. Notify local authorities, the Federal Trade Commission (FTC), or other relevant organizations. They can help verify the information and guide you through the next steps. 

Remember, falling victim to a scam is extremely common and nothing to be ashamed of. Scammers are skilled at exploiting your trust and goodwill, often catching you in emotional moments. But by following these tips, you can better protect yourself and your financial future.