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AI scams are ramping up, but don’t worry—staying sharp and verifying before you act is your ticket to staying safe and scam-free.
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Artificial intelligence has quickly become a trusted companion in daily life.
Whether it’s asking a chatbot for help making a recipe at home, using a voice assistant to manage your busy schedule, or simply making use of a tool to aggregate and analyze data, AI is everywhere in 2025. However, this reliance shouldn’t be total.
As this technology has increased in prevalence, so have AI-related scams. Take the recent case of the cruise hotline scam covered by the Washington Post.
A traveler was seeking out customer service for his upcoming cruise and came across an AI-generated customer support number that he believed was legitimate.
After calling this number, however, he found himself faced with a fraudulent $768 charge on his account.
Cases like this are becoming all too common and it illustrates a sobering reality: Even tech-savvy users can be vulnerable when a scammer is using a technology as powerful as AI.
Lifeguard gathered data from leading sources, including the Federal Trade Commission, Wells Fargo, and more, to help you stay protected in the rising era of AI fraud.
Scammers exploiting human trust is nothing new, but artificial intelligence has given them a new turbocharged set of tools to make use of.
Traditional phishing emails and spoofed websites, which are still valuable tools of the scamming trade, have now been joined by scams where AI itself is being used to assist the fraudsters.
The Federal Trade Commission reported an overall $12.5 billion increase in consumer losses to fraud in 2024, underscoring the prevalence of this issue.
As if that weren’t bad enough, the Identity Theft Resource Center noted that one of three prominent trends expected in the coming years is AI technology, making it easier for thieves to coerce unsuspecting people into giving away identity credentials.
Customer service fraud has always been an appealing market for fraudsters, likely due to the fact that it targets consumers already in some type of distress.
When emotions come into play, people are far more likely to make risky decisions.
Whether it’s trying to cancel an itinerary, fix a billing issue, change a flight, or something else, feelings of being flustered or angry can lead to trying to resolve an issue too quickly and without thinking too critically.
With scammers integrating AI into search results and customer assistance, a dangerous new twist enters the picture.
Fraudsters won’t need to trick search engines directly; they can simply plant fake data on random sites that AI systems will then think is an authoritative source.
The barrier between scammer and victim is poised to become even thinner as a result of AI, with this technology becoming both the middleman and problem all in one.
At the end of the day, AI is a tool like anything else.
While the vast majority of people don’t use it for nefarious purposes, retooling it into scams isn’t inherently difficult.
There are four main ways scammers are manipulating AI tools to assist with their fraud.
By blending real data with fabricated information, scammers can exploit AI — a technology that you trust.
Unlike other cybersecurity attacks, the scam doesn’t work because you were careless, but rather because a powerful technology was manipulated to feed you malicious information.
AI will do exactly what a person tells it to, meaning if a scammer convinces it that it’s completing its task, it will do so.
It also has not been trained to necessarily detect that fraudulent data could be on a website if that data has received traffic recently and the data has been there for a long time. This technology is still in its infancy.
Educating yourself on the common signs of an AI-assisted scam can help you protect yourself and stop the scam before it takes hold.
Luckily, the common scam red flags aren’t actually different, for the most part, from those in older cybersecurity threats.
Some of the most common cybersecurity red flags to keep an eye out for include:
The danger of AI tools and the summaries they produce is that they remove a second layer of security: the very research you do when vetting a source.
Despite all of the publicity around AI scams, there is good news.
Just a few proactive habits can help keep you better protected from scams and reduce your risk of falling victim to an AI-powered cyberattack.
Consider some of the following general tips:
The key to keeping yourself protected from a cyberattack is a mindset of “verification first.” When AI is involved, a practical rule of thumb is to verify, then trust.
The surge in AI-related scams has forced both technology platforms and regulators to respond.
Just last year, the FTC announced a crackdown on any operations that use AI hype or sell AI technology that could be used in deceptive or unfair ways.
Enforcement is still evolving, though, and new proposals meant to hold platforms accountable when their AI products propagate fraud will likely be released.
From a company standpoint, search engines have pledged to improve AI vetting services in an effort to reduce the number of scam results.
Google is actually using AI itself to combat AI-fueled scams in search, claiming that it has seen 80% of associated scams drop due to its efforts.
Beyond federal regulations and company oversight, consumer advocacy is also poised to help address the issue.
Organizations like the Identity Theft Resource Center are calling for more consumer education around AI fraud risks and the main argument is that awareness campaigns need to evolve just as quickly as the technology itself.
Knowing how to protect yourself from an AI attack, for instance, requires the latest data.
Systematic safeguards and individual vigilance will both be necessary in the fight against AI-powered cyberattacks.
While platforms can do their best to filter out malicious data, you, as the consumer, are still the first line of defense for yourself. Maintain a healthy dose of skepticism to keep your data private and secure.
AI is an amazing tool that’s given us convenience, speed, and brand new ways to connect with information around us.
However, it has also given scammers a new strategy to defraud everyday people. The $768 cruise scam may sound like a one-off, but it reflects a larger problem that will only continue to grow.
As fraudsters continue to exploit AI’s confidence and our own trust in technology, it’s important to stay vigilant.
The best defense won’t be to avoid AI, but to use it wisely instead. Always cross-check, verify, and pause before acting on sensitive information.
Whether you are booking a cruise, troubleshooting a bank issue, or resolving a travel emergency at the very last minute, there’s no reason to rush.
Taking your time and not making a hasty decision can save you both time and money by avoiding getting caught up in a scam.
AI is a smart tool, but scammers are cunning in the way they manipulate it. Keep yourself ahead of the problem by remembering that nothing is better than taking an extra few minutes to verify a source.
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