Report finds consumers are losing more money to scams as AI use soars

By GREGG MONTGOMERY
WISH-TV | wishtv.com

A new report reveals identity crime is becoming more financially severe, with 35 percent of reported losses exceeding $10,000.

Numerous scams in central Indiana include the traffic enforcement QR code, and pig-butchering and banking schemes.

A massage therapist in the Irvington neighborhood in Indianapolis lost $18,750 to the banking scam, and a Bedford man lost more than $10,000 to the pig-butchering investment scam.

The California-based Identity Theft Resource Center released its 2025 annual report, which also found that 68 percent of identity crime victims seriously considered self-harm, compared to 14 percent who received support from the center.

“That dramatic number indicates to me the power of having a human lifeline of human connection during a crisis is more important now than ever,” said Eva Velasquez, CEO at the center, a national nonprofit that supports victims of fraud. “The power of having a lifeline of human connection during a crisis is more important now than ever.”

Too many people rely on their own research using Google or other internet search engines.

“Google is not the arbiter of truth,” Velasquez said. “There are a lot of scam websites on these search engines. There is still a lot of misinformation and hallucinations and AI summaries.”

Many victims get scammed again after searching for help online and finding a fraudulent “recovery” service or business.

“Anyone that guarantees that they can recover your money, I want you to run,” Velasquez said. “No one can guarantee you can recover your money.”

The rapid evolution of artificial intelligence is making scams easy and cheap for bad actors to pull off.

“It takes no time, very little money to put into perpetrating these scams, and that is what makes everyone a target,” Velasquez said. “I’m telling you that everyone is vulnerable to this, and no one has the skills to be the human lie detector that you need to be in order to suss these things out.”

The best way to avoid falling victim to a scam is to pause and contact a trusted family member or friend.

If it’s an unsolicited phone call, email, or text, go directly to the source to verify.

People can also file a report with the Federal Trade Commission, the Identity Theft Resource Center, the Indiana Attorney General’s Office, or the local police.

This story was originally published by WISH-TV at wishtv.com/news/i-team-8/report-finds-consumers-are-losing-more-money-to-scams-as-ai-use-soars.