AI Scams Are Exploding: How Gen AI Is Supercharging Scams

Image Credit: Pexels

Scam activities have increased dramatically across the U.S. in the past year, fueled by the rapid adoption of generative AI tools by fraudsters. The latest data from the FTC shows that reported losses from fraud hit a record $12.5 billion in 2024, which is a 25% increase from 2023. These scams are not just more frequent—they’re harder to detect: 38% of scam reports resulted in financial loss, up from 27% the previous year, reflecting how convincing AI-powered phishing, deepfake calls, and impersonation attempts have become. As detailed in the FTC’s 2024 snapshot, “over 82% of phishing emails are now AI-generated,” enabling scammers to mimic businesses, officials, or loved ones with alarming realism. 

This surge translates directly to greater financial damage. Imposter scams accounted for nearly $3 billion in reported losses, while investment scams soared to$4.6 billion in consumer losses for 2023—making them the most devastating fraud type by dollars lost. Losses from business imposters climbed as well, reaching $752 million in 2023, up from $438 million in 2021. The FTC reports that median losses are often highest when scammers make initial contact by phone ($1,480)or when they leverage AI tactics such as deepfake voices. Younger adults report losing money more often (44% of 20–29 year olds), but seniors aged 80+ face the steepest losses, with median incidents costing $1,650.

To combat this rapidly evolving threat landscape, the FTC has launched new enforcement initiatives targeting AI-driven fraud schemes, fake AI-powered services, and the misuse of deepfake and voice cloning technologies. As the FTC’s data visualizations and summaries confirm, the most effective defense remains public vigilance: “Always verify unexpected or urgent payment requests—even if they sound official—and report anything suspicious to the FTC”. With generative AI transforming scams at an unprecedented scale, staying skeptical and informed is more important than ever.

Reach out to us at Karna if you want to discuss ways to secure your company against Gen AI scams.

Image Credit: Federal Trade Commission