GenAI fuels new wave of sophisticated financial fraud, creating deepfakes, realistic phishing scams, and fake documents that are harder than ever to detect, experts warn. According to the FBI and financial security leaders, generative AI is now enabling criminals to craft highly convincing fraud attempts — from fake voices of loved ones in distress to forged IDs and flawless scam emails.

Mike de Vere, CEO of Zest AI, told PYMNTS that “fraud is only going to get worse with the creation of generative AI,” as these tools lower the cost and skill barrier for cybercriminals. Deepfake videos, AI-cloned voices, and AI-generated documents are making it easier to bypass identity checks and trick even seasoned professionals.

The U.S. Federal Trade Commission (FTC) reported that American consumers lost $12.5 billion to fraud in 2024 — a 25% spike from the previous year — as criminals increasingly leveraged AI-powered deception. Investment scams accounted for $5.7 billion of that total, while imposter scams reached $2.95 billion, making them the most reported fraud type.

In addition, a PYMNTS Intelligence report, in partnership with i2c, revealed that 28% of consumers were victims of credit card fraud last year, and over a third remain highly concerned about future threats.

Looking ahead, de Vere projects financial fraud losses could climb to $40 billion by 2027, as generative AI tools become cheaper and more widely available — with fake IDs and documents now being created for as little as $20.

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