Protecting Your Financial Information: Staying Ahead of AI-Powered Deception Tactics

  • Tillman Hartley

Artificial intelligence (AI) is revolutionizing many aspects of our lives.  However, as technology evolves, so do the threats associated with it. One area where AI is becoming increasingly problematic is in the financial industry, where fraudsters are leveraging sophisticated deception tactics to target individuals and institutions alike.

We want to take a moment to remind you of the steps you can take to safeguard your accounts and personal details from cybercriminals. In order to best protect yourself, it is important to be aware of the latest fraud tactics, how to recognize potential scams, and how to stay vigilant in the face of these ever-evolving threats.

The Rise of AI-Powered Fraud

Artificial intelligence has enabled fraudsters to refine their strategies, making them harder to detect and more convincing. In the past, phishing scams were often identifiable by poorly written emails, odd-looking links, or suspicious sender addresses. However, these tactics are becoming more sophisticated. Fraudsters can now create highly convincing emails, texts, and even phone calls that look and sound like they are coming from legitimate sources—such as your bank or financial institution.

AI-powered tools can analyze personal information about you (from public records, social media profiles, and previous interactions with companies) to craft tailored scams that feel incredibly authentic. These personalized attacks, often called "spear phishing," make it much harder to differentiate a legitimate request from a fraudulent one.

Red Flags to Watch For

With these increasingly sophisticated methods, how can you recognize if a communication is a scam? While fraudsters are getting better at mimicking legitimate sources, there are still red flags to look out for:

  1. Unsolicited Communications: If you receive an unexpected phone call, email, or text message regarding your financial accounts, this is a major red flag. Legitimate financial institutions typically won’t reach out to you in this way unless you’ve specifically requested contact.
  2. Requests for Personal Information: Be wary of any communication that asks you to verify or provide sensitive personal information—such as passwords, PINs, or account numbers—via email, text, or over the phone. No legitimate institution will ask for such information in this manner.
  3. Suspicious Links or Attachments: If a message contains a link that you didn’t expect or an attachment you weren’t anticipating, do not click it. These could be attempts to gather your personal details or install malware on your device.
  4. Urgent Language or Threats: Fraudsters often create a sense of urgency to pressure you into making quick decisions. They might tell you that your account is compromised and demand immediate action, such as clicking a link or calling a phone number. If you feel rushed, recognize that as a red flag and take a beat to critically analyze the situation.
  5. Mismatch of Contact Details: If the phone number, email, or website address provided in the message doesn't match the contact information you know to be legitimate, that’s a clear indication the communication might be a scam.

Steps You Can Take to Protect Yourself

Here are steps you can take to protect yourself and your financial information from fraudsters:

  1. Don’t Engage with Suspicious Communications

If you receive a message asking for personal details or regarding your financial accounts, don’t respond, click on any links, or share any information. If the message is an email, avoid opening attachments or clicking on any URLs. Even if the communication looks legitimate, it’s always better to be cautious and confirm the legitimacy of the communication via known and verifiable contact information

  1. Verify the Communication by Contacting the Institution Directly

If you receive an unexpected communication from a financial institution, the safest course of action is to contact the institution using the contact information found on their official website. Do not use any contact details provided in the suspicious communication, as they may have been fabricated to deceive you.

Call the main phone number listed on the company’s official website, the number provided on your statement, or the number appearing on the back of your credit card to verify whether the communication was genuinely from them. If you are instructed to visit a website or download an app, type the website address directly into your browser rather than clicking a link in the message.

  1. Be Aware of Caller ID Spoofing

Caller ID spoofing is a tactic where fraudsters manipulate the caller ID to make it appear as though the call is coming from a trusted source, like your bank. This can make it harder to determine if the person on the other end is legitimate. Even if the phone number looks authentic, always verify by calling the institution back using a number you know is correct.

  1. Use Multi-Factor Authentication (MFA)

Many financial institutions now offer multi-factor authentication (MFA) as an added layer of security for your accounts. MFA typically requires you to provide something you know (like a password) and something you have (like a texted code or an authentication app) to access your account. Enabling MFA is an effective way to protect yourself from unauthorized access, even if your login credentials are compromised.

  1. Regularly Monitor Your Accounts

One of the best ways to detect fraudulent activity is to regularly check your bank and credit card statements. Look for any unfamiliar transactions and report them to your financial institution immediately. The quicker you catch unauthorized activity, the better your chances of minimizing the damage.

  1. Freeze Your Credit

A credit freeze prevents new accounts from being opened in your name by restricting access to your credit report. This is an effective way to protect yourself from identity theft and fraudulent credit applications. You can freeze (and unfreeze) your credit for free with the three major credit bureaus—Equifax, Experian, and TransUnion—whenever needed.

Why This Matters Now More Than Ever

While Tillman Hartley client accounts have not suffered losses from these types of attacks, we have seen foiled attempts first-hand and know of multiple cases where individuals or businesses have fallen victim to these sorts of frauds. Our vigilance and defenses must evolve as quickly as the criminal’s tactics in order to remain safe.

Artificial intelligence has the potential to revolutionize many industries, but as with any technology, not all of them are good. By staying informed, being cautious about unsolicited communications, and following the best practices outlined above, you can help protect yourself and your financial information from these increasingly sophisticated fraud tactics.

At Tillman Hartley, we are committed to keeping you informed and secure. If you have any questions or need guidance, don’t hesitate to reach out to us. Stay vigilant, stay safe, and remember—when it comes to your financial security, it's always better to be cautious than to take chances.

 

Disclaimers

Tillman Hartley is an SEC-registered investment adviser.

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