AI is changing the way we invest, manage money, protect against financial scams, and make financial decisions. In this episode of Wise Money, we explore how AI and financial planning are evolving, from investing and insurance to budgeting and fraud prevention. Plus, we discuss the opportunities and risks that come with AI and why more information doesn’t necessarily lead to better financial decisions. Ultimately, artificial intelligence can be a powerful tool, but true financial wisdom still requires context, experience, and good judgment.
Season 12, Episode 1
Download our FREE 5-Factor Retirement guide
Read our blog!
Listen on Podcast
Subscribe on YouTube
This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results. This video may discuss estate planning concepts but does not constitute legal advice. Please consult an attorney for advice specific to your situation.
How to Protect Yourself From Financial Scams in the Age of AI
Financial scams are nothing new, but technology is making them harder to recognize. A suspicious email filled with spelling mistakes used to be relatively easy to spot. Today, scammers can use artificial intelligence to create convincing emails, imitate legitimate companies, and even clone the voice of someone you know.
The Federal Trade Commission warns that scammers can use a short audio clip, potentially taken from content posted online, to clone the voice of a loved one and make a fake emergency sound legitimate. As AI and financial planning become increasingly connected, protecting your financial life requires understanding not only the opportunities created by new technology, but also the risks.
Here are several steps you can take to protect yourself and your family.
Be Suspicious of Urgency
One of the biggest warning signs of a financial scam is urgency.
A caller might claim that your bank account has been compromised, a family member needs money immediately, or you owe the government money that must be paid today. The goal is to get you to react emotionally before you have time to investigate.
The FTC recommends resisting pressure to act immediately. Legitimate organizations should give you time to verify information and make a decision.
If something feels urgent, slow down. Don’t send money, provide financial information, or move assets until you independently verify what’s happening.
Verify the Person Contacting You
Caller ID, an email address, or even a familiar-sounding voice shouldn’t automatically be trusted.
If someone contacts you claiming to represent your bank, credit card company, brokerage firm, or another financial institution, don’t simply call the number they provide. Instead, find a trusted number yourself. For example, call the number printed on the back of your credit card or access the institution through its official website or app.
The FTC specifically recommends contacting an organization using contact information you already know is legitimate rather than information included in an unexpected message.
The same principle applies when someone claims to be a family member. Hang up and call that person directly using the phone number you already have saved.
Know How the IRS Communicates
IRS impersonation scams can be especially intimidating because scammers frequently use threats or promises of unexpected refunds to get someone’s attention.
Generally, the IRS’s first contact with a taxpayer will be through a letter or notice delivered through the mail. The IRS warns that unexpected communications that rush you, threaten you, demand immediate payment, or ask for personal or financial information may be scams.
If you receive a suspicious message claiming to be from the IRS, don’t click the link or immediately provide information. Independently verify the communication before taking action.
Protect Your Online Accounts
Strong digital security has become an important part of protecting your financial life.
Use unique passwords for important financial accounts and enable multifactor authentication whenever possible. Pay particular attention to accounts connected to your money or identity, including your email, bank, investment accounts, credit cards, and mobile phone account.
Your email account deserves special attention because access to your email can potentially help a criminal reset passwords for other accounts.
You should also be cautious about links and attachments in unexpected messages. An email can look professional and still be fraudulent. AI makes it easier for criminals to create polished messages, so poor grammar is no longer a reliable way to identify a scam.
Create a Family Financial Safety Plan
Scam prevention shouldn’t only be about protecting yourself. Consider talking with your parents, children, and other family members about what they should do if they receive a suspicious financial request.
One strategy is establishing a family code word that can be used to verify someone’s identity during an emergency. More importantly, create a simple rule: If someone unexpectedly asks for money or financial information, verify the request independently before doing anything.
This can be particularly important with AI voice cloning. Hearing the voice of someone you love may feel like proof of identity, but increasingly, it isn’t.
Don’t Let Technology Replace Financial Wisdom
Artificial intelligence can be a valuable financial tool. It can help organize information, analyze spending, explain financial concepts, and make certain financial processes more efficient. But more information doesn’t automatically produce better decisions.
That’s an important distinction when considering AI and financial planning. AI can provide information quickly, but financial decisions often require context. Your taxes, investments, retirement goals, insurance coverage, estate plan, family circumstances, and personal priorities are interconnected.
The same principle applies to financial scams. Technology can help protect you, but some of your strongest defenses remain remarkably simple: slow down, verify the source, protect your information, and talk with someone you trust before making an unusual financial decision.
As scams become more sophisticated, those habits become even more important. Artificial intelligence may change how scams look, but it doesn’t change one of the best ways to protect yourself: when something doesn’t feel right, don’t act until you’ve independently verified it.
