Artificial intelligence is aiding scammers in appearing more trustworthy, posing a threat to people's retirement funds.

The advancement of artificial intelligence has brought about a new level of sophistication in financial fraud, making it increasingly difficult to detect and prevent. A recent report in Barron's sheds light on how scammers are using AI to create convincing identities and schemes, specifically targeting older individuals who are approaching or already in retirement. One case highlighted by Barron's involved a 63-year-old woman who fell victim to an online dating scam.

She connected with a man who claimed to be a high-ranking U.S. Army official serving in Syria, and their relationship quickly moved from the dating platform to private chats, texting, and video calls. The man even provided what appeared to be a legitimate passport as proof of his identity.

Over the course of four months, the woman was convinced to transfer approximately $150,000 through PayPal, wire transfers, and cryptocurrency. It wasn't until she reported the incident that authorities were able to recover about $35,000. The Securities and Exchange Commission (SEC) has also issued warnings about investment scams that use personal relationships as a way to gain trust and then lead victims towards fraudulent investments.

These types of scams are often referred to as "long cons" and the SEC advises individuals to be skeptical of any unsolicited investment opportunities, regardless of how well they believe they know the person presenting them. According to the report in Barron's, AI technology has become a valuable tool for fraudsters, helping them identify potential victims, create sophisticated communication, and produce fake content on a large scale. In fact, the FBI's 2025 Internet Crime Report received over 22,000 complaints related to AI, resulting in a staggering $893 million in losses.

Kathy, a source interviewed by Barron's, described the impact of AI on fraud as an "industrial revolution" for criminals. And it's not just fake romantic partners that pose a threat. The SEC has also taken action against investment firms that have made misleading claims about their use of AI.

As AI continues to make deception more affordable and believable, protecting one's savings and investments requires not only safeguarding personal information, but also being cautious of relationships and opportunities that may seem too good to be true. It's important to always remain vigilant and aware of the potential risks involved, especially when it comes to financial matters. After all, as the saying goes, "If it sounds too good to be true, it probably is."