Cybersecurity and Your Money in the AI Era
Bruce Helmer and Peg Webb are financial advisors at Wealth Enhancement and co-hosts of “Your Money” on WCCO AM 830 on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group®.
Artificial Intelligence (AI) has brought remarkable advances to everyday life, but unfortunately, it has also supercharged the tools available to criminals. For investors and families, that reality comes with new risks and new responsibilities. According to the FBI’s Internet Crime Complaint Center, reported fraud losses exceeded $16 billion in 2024, a record figure. AI is lowering the cost of deception, making it easier for fraudsters to mimic voices, fabricate documents, and create convincing websites.
High-net-worth and mass affluent households are prime targets. The reason is simple: the higher the assets, the bigger the potential payday for criminals. But it is not just multimillionaires who need to pay attention. Retirees with steady wealth, trustees managing family accounts and adult children helping aging parents are all on the radar. Complex finances, multiple accounts, and busy lives can make it easier for fraudsters to take advantage.
AI-enabled fraudsters in action
Real-world cases illustrate just how brazen these schemes can be. In one instance, criminals used a deepfake video call to trick a corporate team into wiring $25 million. Regulatory bodies like the Financial Industry Regulatory Authority (FINRA) have also issued warnings about fake investment pitches that boast of AI-powered strategies and fabricated results. The Internal Revenue Service has warned taxpayers of convincing fake tax-preparer sites designed to look identical to IRS.gov. And in the world of crypto and speculative investments, AI-generated promises of “can’t lose” returns fueled nearly $9.3 billion in fraud losses in 2023.
What unites these scams are the red flags. Urgency is one of the biggest ones: scammers insist you act immediately or face severe consequences. Another is false authority: someone claiming to be from the IRS, your bank, or your financial advisor. Today, those cues are more dangerous because AI can fake official voices, titles and video feeds. Secrecy is another warning sign: requests framed as “confidential” or “just between us.” Finally, unusual payment methods like gift cards, cryptocurrency transfers or sudden changes in wiring instructions are classic indicators of fraud.
Practice good cyber hygiene
The good news is that protecting yourself doesn’t require advanced technology, just disciplined habits. Experts recommend five simple steps. First, slow down. Fraudsters rely on speed and panic; taking a breath often prevents mistakes. Second, verify through known channels before acting. That means calling a bank, advisor or family member back on a number you know or can verify, not one provided in a suspicious message. Families might even agree on a phishing “safe word” that must be used in any urgent request. Third, strengthen your logins. Long, unique passwords, password managers, and multi-factor authentication with passkeys or security keys make it much harder for criminals to break into accounts. Fourth, freeze your credit. A freeze, or at a minimum a fraud alert, blocks criminals from opening new loans or credit cards in your name. And fifth, always use official channels. Go directly to IRS.gov, your advisor’s verified email or your bank’s secure site. Many institutions now offer account alerts for logins, new payees or wire transfers, which can help you catch suspicious activity early.
Act quickly if attacked
If you do fall victim, speed matters. Contact your bank, advisor or credit card company right away. Report the crime to the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Commission. Above all, tell your family and advisor, do not hide it out of embarrassment. The faster you act, the better the chances of containing losses and even recovering funds.
AI is making persuasion easier and cheaper for criminals to achieve scale. But the counterbalance is process and authentication. AI can fake a voice or a video, but it cannot fake a callback on a known number. Building verification into your daily financial routine is your best defense.
AI is powerful, but awareness and process can keep your wealth safe. If something feels off, it probably is. Stop, verify, and ask. By taking just one or two concrete steps today (e.g., freezing your credit, setting up account alerts or talking with your family about red flags) you can make it much harder for criminals to succeed.
The age of AI has arrived for better and in some cases for worse. For those managing assets, the challenge is not to fear technology but to stay a step ahead. By pairing vigilance with practical habits, families can protect their financial security in an increasingly digital world.
The original article was published by the Pioneer Press
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
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