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Scams like the grandparent scheme, fake invoices, romance cons, and those calls about compromised accounts have been around for years. The tactics haven’t changed much, but the way they’re carried out has become much more convincing.
AI fraud has made old scams harder to spot by removing the obvious warning signs. Phishing emails used to have broken English, fake voices didn’t sound quite right, and scam websites looked suspicious. Now, those giveaways are disappearing quickly.
At Western Bank, we often hear the same question from customers: how can I tell what’s real anymore? Let’s look at what’s changing and what still helps protect you.
The Scale of the Problem
Federal fraud reports now list artificial intelligence as its own category, showing how quickly this issue has become common. Losses from AI scams are reported in the hundreds of millions each year, and the real number is likely even higher.
This happens because victims can only report what they notice. If someone gets a voice-cloned call from a ‘grandchild,’ it’s usually recorded as a regular family emergency scam unless someone later realizes the voice was fake. Most people never know.
Older adults are suffering the most, both in the number of complaints and the amount of money lost in each case.
Voice Cloning Rebuilt the Grandparent Scam
In the past, scammers needed someone who could pretend to be a panicked relative over a poor phone connection. It worked sometimes, but the voice usually didn’t sound exactly right.
Now, scammers can make the voice sound real. With just a short audio clip and cheap, easy-to-find tools, they can clone someone’s voice. Studies show that most people can’t tell the difference between a cloned voice and a real one, especially when they’re stressed.
Scammers often use public sources for voice samples, like a birthday video on Facebook, a TikTok, or even a voicemail greeting. That’s all they need.
Voice cloning isn’t usually a scam by itself. Instead, it’s a tool used in other scams, like romance scams where the partner finally calls, family emergency fraud, pretending to be government officials, or authorizing business wire transfers.
Deepfake Video Reached the Conference Room
Business email compromise has been a common type of wire fraud for a long time, and it’s still one of the most costly types of fraud for businesses of all sizes. On average, each case results in losses of hundreds of thousands of dollars, usually sent by wire or ACH.
Now, scammers are using video. There have been real cases where employees approved multimillion-dollar transfers after joining video calls filled with deepfake versions of executives and coworkers they knew.
This changes things. For years, the advice was to get on a video call to verify someone’s identity. Now, that alone isn’t enough.
Phishing Got Fluent
The usual warning signs are gone. AI language tools now create clear, well-written messages and can personalize them using information from social media and public records.
The results are clear. Losses from phishing have gone up a lot, even though the number of attempts hasn’t changed much. The scams are just more convincing now.
There’s a reason for this. Research shows that the smooth, error-free style of AI-generated messages makes people trust them more. Messages without typos and with the right tone are less likely to raise suspicion than obvious fakes.
Why Capable People Still Fall for It
It’s easy to think victims were just careless, but the facts don’t support that idea.
These scams are designed to create fear and urgency, like a panicked grandchild, a boss asking for a quick transfer, or an investment opportunity that ends tonight. Stress makes people act quickly, just when they should slow down and think carefully. Scammers also pretend to be in charge, because most people listen to authority.
It’s important to notice the bigger trend: most fraud losses now come from scams that target people, not computer systems. The real weak spot is human judgment under stress, not technology.
No one makes good financial choices when they’re panicked. That’s exactly why scammers try to create panic.
What Actually Protects You
Always verify using a different method than the one the scammer used to contact you. If someone calls saying they’re family, hang up and call the number you already know. If you get an email asking to change wire instructions, call the vendor using a trusted number. Never use contact details from the suspicious message.
Set up a family code word that isn’t easy to guess from social media. It might seem old-fashioned, but it works, because a scammer can’t clone information they don’t have.
Add a waiting period before making large or unusual transfers. Taking your time helps protect you, and scammers try to rush you for a reason.
Enable two-factor authentication on your financial accounts, and never give a verification code to anyone who contacts you. Real banks and companies will never ask for those codes.
For businesses, require two people to approve any wire transfer over a certain amount, and always call back to verify any changes to payment instructions. Make sure your staff know they won’t get in trouble for taking time to double-check. If a request feels urgent, that’s a sign to be extra careful.
Acting quickly is important after a scam, too. Stolen money usually moves within minutes, and the longer you wait, the harder it is to recover. Tell your bank right away if you suspect fraud.
Staying Ahead of AI Scams
AI didn’t create these scams, but it made them cheaper, harder to spot, and more effective, even against people who would have noticed the old tricks. The best defense isn’t just trusting your instincts, since scammers are getting better at sounding real. Instead, use good habits: check things independently, take your time with big decisions, and see urgency as a warning sign, not a reason to rush.
If you want to review your account protections or discuss ways to prevent fraud in your business, we’re here to help. Western Bank helps individuals, families, and business owners set up smart safeguards before problems happen. Visit a branch or contact our team anytime.
