New AI Fraud Schemes Are Pushing Losses to Record Highs

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Financial fraud is hitting record highs and becoming a major problem for clients as cyber criminals become more sophisticated, according to a recent survey from the CFP Board. Nearly two thirds of Americans have encountered fraud or know someone who has in the past three years, and more than half expect themselves or someone close to them to be targeted in the next year. Losses are also at an all-time high, hitting $16 billion in 2025, up 25% from the prior year, according to the FTC. As fraud becomes more prevalent, helping prevent or respond to it can build stronger relationships between advisors and clients and keep their assets protected. 

“There are important gaps in knowledge and preparedness that everyone needs to address,” said Kevin Roth, managing director of research at CFP Board, adding that the strategies will continue to evolve alongside new artificial intelligence tools.

Something Smells Phishy

Cryptocurrency and AI scams are causing some of the largest financial headaches. In 2025, Americans lost $7.2 billion to crypto investment scams and $893 million to AI-related scams. Vishing, where fraudsters use AI to clone voices and convince victims to transfer money, is a growing threat. 

“Fraud is now more sophisticated and can involve more convincing impersonations than in the past,” said David Zuckerman, a CFP and founder of Zuckerman Capital Management. “A good rule of thumb is to never assume that someone reaching out to you is who they purport to be without independent verification,” he said, adding that confirming wire requests by phone is mandatory, as well as providing information on any third parties involved and the nature of the transaction.

The CFP Board report also found:

• Phishing or smishing (SMS text message scams) are the most common types of fraud, making up 62% of attempts. 
• Imposter scams are also common, at 51%, while investment fraud, lottery scams and relationship scams made up around 20% of incidents. 
• Just 37% of respondents said they felt confident in their ability to spot a scam. 

It’s Not Just Grandma. Americans under 45 may be more confident than older generations in their ability to spot a scam, but 32% reported losing money to fraud, compared with 20% of their older counterparts. And it’s not small potatoes: More than half of those victimized in the past three years said they lost $500 or more. 

According to the survey, a quarter of those who experienced fraud didn’t report it. “Most fraud victims face real, practical barriers after an incident,” said Roth. But victims shouldn’t just walk away. “That closes off any chance of recovering a loss and misses the opportunity to inform others about potential risk.”

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