A few years ago, you could spot most financial scams by their broken grammar, misspelled logos, or generic language that felt nothing like legitimate correspondence.

Charles Schwab’s financial crimes team says those distinctive signs have largely vanished, replaced by attacks driven by artificial intelligence and built around actual personal data.

The brokerage published an article on June 5, 2026, in its Onward education series describing how AI has flipped fraud from a volume game into a precision operation. 

Its findings suggest that criminals no longer rely on casting a wide net, because the technology now helps them research and customize each attack individually.

How Schwab says AI turned scams into a personal threat

American consumers lost a record $15.9 billion to fraud in 2025, up from more than $12 billion the prior year, the Federal Trade Commission associate director Lois Greisman told the U.S. Congressional Joint Economic Committee in March.

Fraudsters used to play a numbers game, sending millions of identical messages and hoping a few people would fall for it. Now, artificial intelligence lets them build each attack around real information about the victim, making the scam far harder to recognize.

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“We’re seeing fraud that feels more personal, incorporates real information, and creates a sense of believability and urgency,” said Kim Bailey, a senior manager on Schwab’s Financial Crimes Risk Management team.

The tactics extend well beyond email and now include deepfake video calls, cloned voices, and fabricated documents that can survive a quick visual check. 

Criminals are also impersonating employees and advisors at the very financial institutions that are designed to protect consumers, Zack Rosebrock stated.

In Hong Kong in early 2024, a finance worker at a multinational firm transferred $25 million after joining what appeared to be a legitimate videoconference, CNN reported.

Every person visible on the call, including the company’s chief financial officer and other staff members, was an AI-generated deepfake.

Voice cloning poses a similarly serious risk, with specialized programs now capable of recreating speech patterns from just a few seconds of recorded audio. 

The Federal Bureau of Investigation issued a public service announcement in May 2025 after criminals used AI voice messages to impersonate senior U.S. officials.

3 red flags that Schwab says still expose a scam

The traditional markers of fraud, such as awkward phrasing and odd formatting, are no longer dependable indicators of an illegitimate communication. AI-generated content now uses correct branding, professional language, and authentic contact information to establish credibility with potential victims, Schwab said in the article.

Bailey identified three patterns that are common among fraudsters but virtually absent from legitimate communications between established institutions and their clients.

1. Pressure to act immediately, especially when it involves transferring money, sending a wire payment, or making changes to your financial accounts
2. Asking for your login credentials, passwords, or other sensitive account information through an unexpected phone call, text message, or email
3. Unexpected investment opportunities that promise unusually high or guaranteed returns

Zack Rosebrock, director of eCrimes Research & Detection at Schwab, said the strongest defense remains what he describes as human judgment and verification.

“AI can make people say things they’ve never said, but when the target knows the person supposedly speaking, the deception usually falls apart,” Rosebrock said.

If something feels off during any call or message, hang up and contact the institution at a verified number to confirm, Rosebrock recommended. 

He also stressed that preserving suspicious communications and alerting your financial institution immediately after a suspected scam can improve recovery outcomes.

Schwab warns that urgency, credential requests, and guaranteed returns remain the biggest scam red flags, despite increasingly convincing AI fraud tactics today.

Witthaya Prasongsin/Getty Images

How Schwab deploys AI technology to defend client accounts

Schwab and other financial institutions now deploy the same underlying technology that criminals exploit, but for protective and fraud-detection purposes. 

The brokerage has invested in systems capable of identifying suspicious behavioral patterns across millions of data points in seconds, Rosebrock confirmed.

Technology is accelerating the evolution of fraud, making it more sophisticated and harder to detect.

One key defensive tool is Schwab Voice ID, which creates an encrypted voiceprint from hundreds of unique vocal characteristics, such as cadence, frequency, pitch, and tone. 

The system also monitors carrier data, device information, and background noise during calls to distinguish live voices from synthetic recordings.

Schwab uses AI to monitor transactions, detect suspicious activity, and block potential fraud before funds leave customer accounts. Its systems also verify user behavior, validate documents, and identify networks that may indicate coordinated fraud schemes.

Older adults and families face a widening vulnerability gap

The increasing personalization of AI fraud creates elevated risks for older adults and family members who may not recognize rapidly evolving scam techniques. 

People age 50 and older reported $4.3 billion in fraud losses during 2025, nearly double the $2.3 billion reported by younger adults, AARP reported.

“AI has forever altered the threat landscape, but there’s no substitute for common sense,” Bailey said. “When something seems off, don’t hesitate to slow down, verify the details, and ask for help from someone you trust.”

Bailey recommended that families openly discuss recent fraud cases, designate trusted contacts on brokerage and bank accounts, and create personal verification phrases. 

Those shared code words allow relatives to confirm identities during unexpected calls, an additional verification step recommended by both Schwab and the FBI.

Schwab also urged consumers to preserve all communications after a suspected scam and to promptly report incidents to both their financial institution and law enforcement. 

That single moment of pause, the report noted, could be the difference between losing your savings and keeping them entirely safe.

Related: Equifax exposes AI fraud threat hitting modern business