Why Fraud is Getting Harder to Spot — and What to Watch Out For

Key Summary:

• Fraud is becoming more sophisticated, with AI-generated texts, emails, and calls making scams harder to detect.
• Common warning signs include impersonation, emotional pressure, and requests for unusual or hard-to-trace payments.
• Consumers can protect themselves by pausing, verifying requests through trusted channels, and using practical habits like code words and careful payment verification.

Scam messages used to be easier to recognize. Today, advances in artificial intelligence mean spam texts can look legitimate, emails are more polished than ever, and even a phone call that sounds like someone you trust could be generated using AI tools.

As scammers adopt more sophisticated technology, their tactics are becoming increasingly convincing, making even savvy consumers vulnerable. The Federal Trade Commission reported that consumers lost $12.5 billion to fraud in 2024, a 25% increase from the year prior. The real number is likely even higher, since many victims never report scams.

While today’s schemes may look more realistic than they did even five years ago, most still rely on familiar tactics designed to pressure people into acting quickly. Understanding those patterns can help you spot potential fraud — and protect yourself before it’s too late.

Warning Signs of Fraud

The technology may have become more sophisticated, but many of the warning signs of fraud remain the same. Whether it’s AI or a human, the fraudster relies on social engineering, using these tactics to pull off a scam. 

Even as scams evolve, many fraud attempts still rely on the same psychological tactics. Recognizing these patterns can help you spot fraud earlier.

Is the Sender Really Who They Claim to Be?

Many modern scams rely on impersonation — pretending to be a trusted person or organization to lower your guard. You might receive a text that appears to come from your bank, a call from someone claiming to be customer support, or even a message that looks like it came from a family member.

These tactics are becoming increasingly common. According to the Identity Theft Resource Center’s 2025 Trends in Identity Report, impersonation scams were the most frequently reported type of scam and increased by 148% in a single year. Criminals most often pose as businesses or financial institutions, but they may also pretend to be friends, relatives, or government agencies.

By mimicking someone you trust, scammers try to make their messages feel routine or legitimate — which makes it easier to convince victims to share information, click a link, or send money.

Is the Situation Urgent or Emotional?

A frantic call or text from a family member. A fraud alert from your bank or social media account. Fraud will typically rely on a sense of urgency or an emotion to keep you from asking questions. 

Security researchers have shown that AI tools can replicate a person’s voice with just a few seconds of audio. With only a short recording, fraudsters can effectively spoof someone’s voice. That means the urgent call you just received from your mother asking you to wire money could be a scam.

Similarly, a call or notification from your bank about unusual spending or theft could be a scam. Hoping that you’ll panic when they call about a $5,000 withdrawal from your bank account, scammers want you to be more worried about getting that money back than thinking about potential fraud. 

The more high-pressure or emotional the interaction seems to be, the more you should be skeptical. 

Does the Request Involve an Unusual or Hard-to-Trace Payment?

At the end of the day, most scams have the same goal: getting you to send money.

It’s worth pausing if someone asks you to resolve a problem by sending money through methods that are difficult to trace or reverse — such as wire transfers, cryptocurrency, or gift cards.

For example, a scammer posing as tech support might claim there’s a problem with your computer or online account and instruct you to pay a “service fee" using gift cards. In another scenario, someone pretending to be from a company you do business with may ask you to urgently wire funds to a new account.

Requests like these are designed to move money quickly before you have time to verify the situation. If payment instructions seem unusual, complicated, rushed, or different from how you normally pay someone, it’s a good idea to pause and confirm the request through a trusted source.

How to Reduce Your Risk of Fraud

While recognizing these warning signs is an important first step, the next step is knowing how to respond when something doesn’t feel right. Taking a moment to pause, verify who you’re communicating with, and avoid rushed decisions can often prevent a scam before you lose any money or personal information.

These simple habits can help reduce your risk and make it easier to spot potential fraud.

Create a Family Code Word

Consider using a code word or phrase with trusted friends and family that they won’t share with anyone else. If a call or text feels suspicious, ask them for the phrase or word. In a pinch, you can ask them something only the two of you would know (such as an inside joke or secret) that isn’t on social media to confirm their identity. 

Pause Before You Respond

Don’t act immediately, even if the situation appears to be high-pressure. A loved one or a trusted banking institution will give you the time and space to make a decision. If something feels strange, don’t be afraid to take a moment and talk it over with someone you trust. Explaining it to someone may even expose the situation as a scam. 

Verify the Request Through a Trusted Channel

If you receive a message about your finances or a request for money, take a moment to verify it before responding.

For example, if someone claiming to be from your bank calls about suspicious activity, hang up and contact the bank directly using the phone number on your debit card or your bank's official website. Just remember not to use a phone number the person calling gives you.

If a friend or family member reaches out from an unfamiliar number asking for help, try contacting them through a number or account you already know is legitimate.

Staying One Step Ahead of Modern Scams

These extra steps may feel small, but they can make a significant difference. Many scams succeed not because people are careless, but because fraudsters create situations that feel urgent, convincing, and emotionally charged.

Even cautious, tech-savvy, and financially responsible people can be caught off guard. Taking time to pause, verify unexpected requests, and question unusual payment instructions can help protect your money and personal information.

Learn more about how to recognize and prevent scams with Old National’s fraud prevention resources.