Sophisticated scams have surged so far in 2025

AI deepfakes have made them even more dangerous

By Mark Huffman of ConsumerAffairs

May 6, 2025

• Criminals are using AI-generated audio and video to impersonate trusted individuals, enabling large-scale fraud like a $25 million heist via a fake video call.

• “Pig butchering” scams that mix emotional manipulation with bogus crypto investments have stolen billions from U.S. victims, often traced to overseas cybercrime rings.

• Scammers continue to exploit older Americans through impersonation and fear tactics, prompting federal crackdowns and sanctions against organized cybercrime networks.

As of May 2025, Americans face an unprecedented wave of scams, with fraudsters employing advanced technologies and psychological tactics to exploit victims. From AI-generated deepfakes to elaborate romance cons, these schemes have resulted in billions of dollars in losses.

The rise of generative artificial intelligence has enabled scammers to create highly convincing deepfake audio and video content. These forgeries are used to impersonate trusted individuals, leading victims to divulge sensitive information or transfer funds.

In one case, a Hong Kong company was defrauded of $25 million through a deepfake video call. Financial institutions are struggling to keep pace with these sophisticated threats, as traditional security measures often fail to detect AI-generated deceptions.

Deloittes Center for Financial Services has predicted financial-services industry fraud losses in the U.S. could reach $40 billion by 2027, up from $12.3 billion in 2023, because of criminal uses of AI.

Romance and investment frauds

So-called “pig butchering” scams, which blend romantic manipulation with fraudulent investment opportunities, have become increasingly prevalent. Victims are lured into online relationships and persuaded to invest in fake cryptocurrency platforms, resulting in significant financial losses. A Cambodia-based cybercrime gang linked to North Korea has reportedly stolen billions from Americans through such schemes.

Older Americans remain prime targets for scammers. In Menlo Park, Calif.,, a 77-year-old woman lost $35,000 after a fraudster posed as a federal agent and convinced her to withdraw cash for a supposed investigation, according to the San Francisco Chronicle. Similarly, a 57-year-old woman in Atherton, Calif., was arrested for impersonating a PayPal representative in an attempt to defraud another elderly victim.

In response to the growing threat, the U.S. Treasury Department has imposed sanctions on individuals and groups facilitating cyber scams. Myanmar’s Karen National Army and its leader, Col. Saw Chit Thu, were sanctioned for allegedly operating scam centers involved in human trafficking and cross-border smuggling.

Authorities advise Americans to always verify the identity of people requesting money and remain wary of people who make unsolicited contact.

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