AI-Driven Fraud and Text Scams Have Increased
Federal reports highlight a surge in financial losses from sophisticated cyber-enabled scams.
Updated on Sept. 21, 2026 in Financial Crime
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Consumers and financial systems face rising threats as scammers utilize artificial intelligence to facilitate fraud. New reports indicate that losses from these digital crimes reached billions of dollars over the last two years.
Why it matters
Criminals are leveraging artificial intelligence to automate deceptive communications and create media that mimics trusted sources. This shift has forced individuals and institutions to contend with more sophisticated threats that bypass traditional security measures.
Federal agencies documented $12.5 billion in consumer fraud losses during 2024, followed by $21 billion in losses from cyber-enabled crimes in 2025. Law enforcement recently arrested a suspect in Savannah, Georgia, for using AI-generated orders to commit retail fraud.
The players
Federal Trade Commission
This is an independent agency of the United States government tasked with protecting consumers and promoting competition.
Federal Bureau of Investigation
This is the domestic intelligence and security service of the United States and its principal federal law enforcement agency.
The details
Scammers increasingly pose as bank officials or government agents to demand immediate money transfers or one-time passcodes through urgent text messages. One notable incident involved a man arrested at a Walmart in Savannah, Georgia, who utilized AI-generated documentation to carry out a retail fraud scheme.
Timeline
Consumers reported $12.5 billion in total fraud losses throughout 2024.
The FBI recorded $21 billion in cyber-enabled crime losses during 2025.
Legal Context
The escalation of AI-aided criminal activity complicates the enforcement efforts tracked by the Federal Trade Commission's consumer fraud reporting database. This trend marks a significant departure from traditional social engineering tactics previously handled by law enforcement agencies.
Residents should remain vigilant against urgent text messages or calls requesting immediate fund transfers or sensitive passcodes. Authorities recommend verifying the identity of anyone claiming to represent a bank or government agency through an official, independently verified contact number.
The takeaway
Consumers should never provide one-time passcodes or transfer funds based on unsolicited digital prompts. Implementing multi-factor authentication and maintaining skepticism toward urgent financial demands are the most effective ways to mitigate personal risk.
Further reading
For more information on current protective measures, visit the Financial Crime section.
Source note: This article includes information reported by Wafb.
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