AI technology is presenting lots of opportunities for businesses to improve efficiency, but it’s also being used by scammers. To protect your assets, it’s more important than ever that you’re vigilant and aware of how criminals might target you.
While you might think of scams as being rare, they could be more widespread than you think. According to Citizens Advice data released in October 2024, around 1 in 5 people in the UK fell victim to a finance scam last year.
Now, with the aid of AI, the number of people affected and the sums lost could rise even further.
AI tools are being used by scammers to build trust with their victims
You might think about scams as happening in a single moment where it’s easy to overlook the red flags. For example, taking a fraudulent phone call when you’re in the middle of something. However, criminals are just as likely to talk to you on several occasions to build a connection.
According to a February 2025 report in the Financial Times, so-called “pig butchering scams” – where criminals “fatten” their target first – are being aided by AI technology.
Here are some of the ways AI might be used to establish trust or impersonate someone more convincingly.
AI-generated emails
Language matters and if you exchange regular emails with someone, you might notice if their tone or style of writing changes. So, one of the worrying ways criminals might use AI is to use previous communications so it can construct emails to sound like the person you’re expecting.
Voice cloning
Just a short clip of someone speaking could be enough to allow a scammer to clone their voice.
Criminals can then use this voice clone to impersonate someone you trust. They might be able to convince you they’re your friend so you hand over sensitive information or impersonate your boss to get you to transfer money to a wrong account.
Deepfake videos
A deepfake is an AI-generated video or audio clip that’s designed to mimic a real-life person, and they can be harder to spot than you think.
In March 2025, the Guardian reported a network of criminals scammed thousands of savers from the UK, Europe and Canada out of $35 million (£27 million) after they fell for fake celebrity adverts on social media.
It’s not just celebrities that scammers might be able to impersonate using deepfake videos; they could pretend to be your friends, family or colleagues too.
6 useful tips that could reduce the risk of fraud
While you may receive a refund if you’ve been affected by a scam, sadly, this isn’t always the case. So, remaining vigilant and taking steps to minimise the chance of you becoming a victim of fraud is important.
Here are six tips that could reduce the risk of falling prey to a scammer.
1. Be realistic
Keep the old saying in mind: If it seems too good to be true, it probably is.
When you’re assessing an opportunity, ask yourself if it’s realistic – potentially high investment returns for seemingly little risk might be tempting but should be a red flag.
2. Establish safe words
AI technology means it’s easier than ever for a scammer to pretend to be someone you trust. So, establishing a safe word could be useful in case someone you know is cloned. If something doesn’t seem quite right, try asking questions only they would know the answer to.
3. Take a closer look at images and videos
AI images and videos can often dupe you if you only glance at them. However, if you pay more attention, there are usually tell-tale signs they aren’t what they seem.
For example, when you focus on the details, you might notice a person’s hand is unnaturally shaped, patterns don’t line up, or shadows are facing the wrong direction.
4. Give yourself time before making a financial decision
Always give yourself time before you make a financial decision. A bit of space might mean you’re in a better position to recognise the signs of a scam and assess if an opportunity is right for you.
Pressuring you to make a quick decision is a tactic scammers use. So, if the person you’re speaking with is encouraging you to act quickly, take a step back.
5. Be cautious of unexpected contact
Being contacted out of the blue should set alarm bells ringing. If something doesn’t seem right about the way your contact is speaking with you or how they’re getting in touch, assess the situation and see if there are further red flags.
6. Use the Financial Services Register
If you’re speaking to someone about your finances, you can use the Financial Conduct Authority’s Financial Services Register to check if the individual or firm is authorised. The register also contains contact details, so you can verify the information you’ve been given to ensure a scammer isn’t posing as a legitimate firm.
Get in touch if you have any questions about financial opportunities
If you’ve come across a financial opportunity and you aren’t sure if it’s legitimate, we could help. As your financial planner, we could highlight potential red flags and help you understand how a decision may fit into your wider financial plan.
Please note:
This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.