In recent years, cybercrime has escalated dramatically, posing significant threats to individuals and organizations alike. In 2024, global cybercrime costs reached an unprecedented $9.5 trillion, marking a substantial increase from previous years. (Secureworks) This surge underscores the growing sophistication and frequency of cyberattacks. Cybercrime has become so pervasive that if it were measured as a country, it would be the third-largest global economy, following only the United States and China. (Secureworks) These statistics are alarming and understanding these risks and knowing how to protect yourself is more important than ever.
Generative AI—technology that can create text, images, voices, and even videos—has changed the game for cybercriminals. In the past, phishing emails were often easy to spot due to grammatical errors or awkward phrasing. Now, AI can craft emails that read as if they were written by a real financial professional, making it much harder to tell the difference between a legitimate message and a scam. AI can also generate fake news articles, fabricate investment reports, and even mimic the voices of your loved ones.
Imagine receiving a phone call that sounds exactly like your grandchild, frantically telling you they are in trouble and need money immediately. Or a voicemail that seems to be from Howe & Rusling, instructing you to move funds to a “safe” account. These scams are no longer hypothetical—AI-generated voice cloning is often used in real-world fraud cases, leaving victims devastated.
We want to help you navigate these new threats with confidence. By understanding how scams work and taking a few proactive steps, you can help safeguard your personal and financial information from sophisticated cyber threats.
How Cybercriminals Target Investors
While AI has made scams more convincing, the methods criminals use remain the same: they rely on deception, urgency, and fear to trick people into acting before they have time to think. Some of the most common scams include:
- Phishing Emails & Calls – Scammers pose as banks, government agencies, or even family members, urging you to share sensitive information or click malicious links. One of the most common phishing scams involves fake emails or calls from the IRS, claiming you owe back taxes or are due a refund. These messages often demand immediate payment or request personal details, but the IRS never contacts taxpayers by email, text, or phone for urgent matters—only through official mail.
- Investment Fraud – Criminals impersonate financial advisors or firms, offering “exclusive” investment opportunities that sound too good to be true. A famous illustration of this is HoweyCoins, a fake cryptocurrency launched by the SEC as an educational tool to show how easily investors can be lured into scams. The website looked professional, featured celebrity endorsements, and promised guaranteed returns—just like real scams do. If an investment opportunity pressures you to act fast, promises high returns with no risk, or seems too good to be true, it’s likely a scam. You can check out the HoweyCoins website here to see just how convincing these scams can look.
- Tech Support Scams – Fraudsters claim your computer is infected and convince you to give them remote access, allowing them to steal personal data. One notorious example is the Microsoft tech support scam, where criminals call unsuspecting users, claiming to be from Microsoft and warning that their computer has a virus. They pressure victims into providing remote access or paying for unnecessary services. Microsoft, Apple, and other tech companies will never call you unsolicited about computer issues. If you receive a call like this, hang up immediately.
- Password Theft & Identity Fraud – Weak passwords, data breaches, and hacked accounts give criminals access to your financial life. Unfortunately, data breaches are commonplace today, but one major example is the 2019 Capital One data breach, (https://www.cnn.com/2019/07/29/business/capital-one-data-breach/index.html) where a hacker stole personal information from over 100 million customers. Many victims had reused passwords across multiple accounts, making it easier for criminals to exploit their data.
How Generative AI is Making Scams Even Harder to Detect
Artificial intelligence isn’t just making scams more believable – it’s allowing criminals to automate fraud on a massive scale. Here’s how AI is being used in cybercrime today:
- Flawless Phishing Emails – AI can generate professional, personalized emails with perfect grammar, making them almost indistinguishable from legitimate correspondence.
- AI-Generated Voice Scams – Scammers can clone voices from just a few seconds of audio, allowing them to impersonate family members, financial advisors, or customer service agents.
- Deepfake Videos – AI can create realistic video messages that appear to feature real people, such as a financial professional giving “exclusive” advice.
- Fake Websites & Chatbots – AI-powered chatbots can interact with victims online, answering questions and creating a false sense of trust before requesting personal information.
With AI-driven scams becoming more prevalent, it’s more important than ever to be skeptical of unexpected emails, phone calls, and online messages—even if they seem to come from a trusted source.
Am I Getting Scammed? Real Examples of Common Scams
If something feels off, it probably is. Scammers use pressure tactics to create a sense of urgency. Here are some real-life examples:
The “Your Account is Locked” Email
You receive an email from what appears to be your bank, warning that your account has been locked due to suspicious activity. The email includes a link to “verify” your information—but clicking it takes you to a fake website designed to steal your credentials.
How to Stay Safe: Instead of clicking on links in emails, go directly to your financial institution’s website by typing the URL into your browser or using their official app. If you’re unsure whether the message is legitimate, call the bank using the number on their website or your bank card. Financial institutions will never ask you to verify sensitive information via email.
The “Grandparent Scam”—Now Supercharged with AI
A caller claims to be your grandchild, saying they are in legal trouble and need money immediately. AI voice-cloning technology makes these calls eerily convincing. The scammer pressures you to send funds via wire transfer or gift cards.
How to Stay Safe: If you receive a distressing call from a loved one asking for money, pause and verify before taking any action. Call the person directly at a known number or check with other family members to confirm their safety. Scammers rely on urgency to bypass your judgment — never send money or share personal details without verifying the story. Also, consider setting up a family “safe word” that only real relatives would know to help identify fraudsters.
The Fake Investment Opportunity
You receive a message from someone claiming to be a financial professional, offering an exclusive investment with high returns. AI-generated websites and fake performance reports make these scams look incredibly real.
How to Stay Safe: Be skeptical of unsolicited investment offers, especially those promising guaranteed high returns with no risk. Verify the professional’s credentials by checking FINRA’s BrokerCheck (brokercheck.finra.org) or the SEC’s Investment Adviser Public Disclosure (adviserinfo.sec.gov). Never invest based on pressure or urgency—real financial professionals won’t rush you into a decision. When in doubt, consult a trusted advisor before moving forward.
The Tech Support Scam
You get a call from “Microsoft” or “Apple” stating your computer has a virus. They ask for remote access, allowing them to steal your data or install malware. AI-powered chatbots now make these scams even more sophisticated.
How to Stay Safe: Tech companies will never call you unsolicited about computer issues. If you receive a call like this, hang up immediately. Never grant remote access or provide payment information to an unexpected caller. If you’re concerned about your device’s security, contact the company directly through their official website or take your device to a trusted local repair shop. Installing up-to-date antivirus software can also help protect against malware threats.
How to Protect Yourself
Cybercriminals rely on deception, but you can take simple steps to reduce your risk:
- Be Skeptical of Unexpected Messages – If an email, text, or call seems urgent or unexpected, pause before responding.
- Use Strong, Unique Passwords – Avoid using the same password across multiple accounts. Consider a password manager.
- Enable Multi-Factor Authentication (MFA) – This adds an extra layer of security by requiring a secondary verification step such as a texted code or biometric.
- Verify Requests Independently – If someone asks for money or sensitive information, call them back using a trusted number.
- Monitor Your Accounts Regularly – Check your bank and investment account transactions for any suspicious activity.
What to Do If You Suspect Fraud
If you believe you’ve been targeted by a scam, act quickly:
- Contact Your Financial Institutions Immediately – Report any suspicious transactions and secure your accounts. Howe & Rusling can help, we should be one of your first calls.
- Change Your Passwords – Update passwords on all potentially compromised accounts.
- Report the Fraud – Notify the FTC (www.identitytheft.gov) or local law enforcement, especially if money was lost.
- Monitor Your Credit – Consider placing a fraud alert or credit freeze with major credit bureaus.
The rise of AI-driven scams makes it more critical than ever to stay vigilant. By being aware of the latest tactics and taking proactive steps, you can protect yourself from cybercriminals. If you ever have concerns or need guidance, our team is here to help. Stay safe, stay informed, and protect what you’ve worked so hard to build.
Disclosures: This communication is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities or adopt any investment strategy. You should consult with your financial advisor or other professional before making any financial decisions based on the content of this material. All examples cited in this material are for illustrative purposes only. Past performance is not indicative of future results, and no representation is made that any investment strategy or cybersecurity measure will be successful or error-free. While this material discusses common cybersecurity risks and outlines best practices, no system or process can guarantee complete protection from cyber threats. Clients are encouraged to remain vigilant and to take proactive steps to secure their personal and financial information. Technology tools and systems evolve, and so do the risks. This material may include references or links to third-party websites or content (e.g., Secureworks, CNN, the SEC, or FINRA). These links are provided for convenience and do not imply any endorsement or approval by Howe & Rusling. We are not responsible for the accuracy, completeness, or security of any third-party sites. Descriptions of AI-based scams and fraud techniques are based on publicly available information and current trends. These descriptions are intended to raise awareness and are not exhaustive or guaranteed to reflect all known risks or protections. Mentions of Howe & Rusling in potential scam examples are hypothetical. Howe & Rusling does not contact clients to move funds without formal verification procedures. If you ever receive suspicious communication claiming to be from our firm, please contact us directly at a known phone number. Howe & Rusling is an SEC-registered investment advisor. Registration does not imply a certain level of skill or training.
