Financial fraud is on the rise amid the rise of AI.
The FBI identified $20.9 billion in losses from cyber crime in 2025, a 26% increase from 2024. And 85% of those losses are due to online fraud.
Kris Edwards, head of fraud prevention at Fifth Third Bank, attributes this rise to advances in AI technology. AI can make it easier for scammers to find your information and disguise their own communications.
“It’s driven by the rise of AI and technology, so fraudsters are increasingly able to get all the information that they need in order to execute these scams through the dark web,” Edwards said. “They’re able to use their tools to make sure that the communications look legitimate, like they’re from your bank.”
Edwards, other representatives of Fifth Third, and Cincinnati FBI agent Matt Rosenberg discussed fraud prevention with Dayton-area business owners at an event Oct. 15. They discussed factors that make people and businesses susceptible to fraud, and how businesses can protect themselves against scams.
Rosenberg identified phishing, spoofing, extortion, and investment scams as the internet crimes most frequently reported to the FBI.
Fraud relies on something called “social engineering,” which uses psychological pressure and emotional manipulation to push someone into giving up confidential information. Phishing, where scammers convince you to give away sensitive information by disguising themselves as trusted sources, is an example of social engineering. Scammers may also appeal to extreme emotions, or threaten arrest or financial loss.
Rosenberg told a personal story: his grandfather received a call claiming Rosenberg was in prison, and would only be released if his grandfather paid $250 in gift cards.
“No legitimate organization is asking for a gift card as a way to pay off bail,” Rosenberg said.
Rosenberg and Edwards encouraged individuals and businesses worried about fraud to be careful of unknown links and suspicious emails.
“Be vigilant. Question and challenge anything that you hear and, when in doubt, reach out and call your banker,” Edwards said. He noted some red flags individuals should look out for, such as urgent texts or emails purporting to be from a boss or bank.
People who receive such messages should slow down and call back from a known or trusted number.
“So, if they’re saying it’s from the bank, call the number on the back of your card and go through the customer service line; stop into a local branch and talk to a banker face-to face," he said.
He also advises not clicking on links from suspicious messages or sharing usernames and passwords.
If you happen to turn over sensitive information before realizing a message is fraudulent, immediately reach out to your bank. Your bank’s scam team can help secure your accounts and, when possible, recover lost money.