There has been little respite from the relentless onslaught of fraud in recent years—and there are few signs of it slowing down.
The FBI’s annual Internet Crime Report found that Americans lost nearly $21 billion last year, soaring to an all-time high. At the same time, the Internet Crime Complaint Center (IC3) received 1,008,597 complaints, a 17.3% increase year-over-year.
Perennial threats like phishing, extortion, and investment schemes were the most frequently reported complaints. However, the greatest financial losses stemmed from cryptocurrency investment scams, where 181,565 complaints resulted in more than $11 billion in losses.
These scams have evolved into big business for criminal organizations. For example, a multi-jurisdictional initiative led by Europol recently shut down a syndicate operating a network of fraudulent cryptocurrency investment platforms promising high returns.
These websites defrauded thousands of victims, with the group allegedly generating and laundering more than €700 million (roughly $817 million).
Who Can You Trust?
For the first time in its roughly 25-year history, the FBI’s report included a section on artificial intelligence. Initial findings show that AI-related threats accounted for 22,364 complaints and nearly $893 million in losses.
Given the novelty of this category, these figures likely understate AI’s true impact, as it has rapidly become embedded in nearly every facet of fraud operations—from generating convincing deepfakes to amplifying campaigns through AI-driven agents.
There is also emerging evidence that bad actors are experimenting with the convergence of quantum computing and AI—a development that could exponentially increase the scale and sophistication of cybercrime.
“Using AI, things have gotten so complicated that you can’t tell what’s real and what’s fake,” said Suzanne Sando, Lead Fraud Analyst at Javelin Strategy & Research. “We’re hearing from a lot of consumers through our fraud survey who, when they receive a legitimate fraud alert from their bank, they don’t even trust that communication. Many of them don’t even take action on those fraud alerts, which is a huge red flag.”
“If you can’t even trust communication that is purported to come from your bank trying to stop fraud, what can you trust?” she said.
Stop and Scrutinize
As these threats grow harder to detect, the FBI urges consumers and businesses to “take a beat,” to pause and carefully scrutinize any unsolicited message.
“That’s the perfect advice because, unfortunately, we’re in a position where a lot of financial institutions aren’t fully ready in a real-time sense to detect some of these scams that are happening,” Sando said. “We’re still in this situation where consumers are the first line of defense. You have to take this mindset of verify everything that’s coming in and then you can figure out, is this something I can trust?”
While simple in concept, this advice can be difficult to follow in practice due to increasingly sophisticated social engineering tactics. These methods have evolved well beyond urgent emails or texts about unpaid tolls.
The FBI found that cybercriminals are now creating fake social media profiles, fabricating identification documents, and producing highly convincing video and audio impersonations of public figures or even loved ones—all to enhance their manipulation efforts.
Targeting the Vulnerable
These tactics are often deployed against older adults, who may be less familiar with digital environments and therefore more susceptible to social engineering. Unfortunately, the impact has been severe: Americans over 60 reported approximately $7.7 billion in losses last year, a 37% increase year-over-year.
This trend was echoed by the U.S. Federal Trade Commission, which reported a fourfold increase over the past four years in older adults losing $10,000 or more to impersonation scams.
In these schemes, criminals impersonate everyone from government officials to tech support personnel, initiating conversations designed to extract money or sensitive information.
Less Time After
While certain groups may be more vulnerable, cybercriminals’ growing technological acumen has made them increasingly indiscriminate—targeting individuals, organizations, and industries alike. This reality makes taking a beat more critical than ever, though it is just one component of a broader fraud prevention strategy.
“Let’s say it is a bank communication that’s coming through,” Sando said. “Call your bank back directly. Don’t use the number that’s coming from the text message because that can be spoofed, but call your bank directly and speak to someone that you know you can trust.”
“There is always time before you approve that transaction or make that investment or click on that link and give away your Social Security number,” she said. “There is less time after because once that money’s out the door, it’s very difficult to track down and try and get it back.”
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