OPINION: Sophisticated AI scams may rise in 2025, targeting identity theft victims

Experts are predicting 2025 will bring many of the same old scams, recycled into a multitude of variations with AI-generated twists that will make them even harder to detect.

“We saw identity criminals use artificial intelligence to improve their phishing lures and create documents used to file false insurance claims and other official documents,” Eva Velasquez, president and CEO of the Identity Theft Resource Center, said in a report this month. “As we look toward 2025, the outlook for victims of identity theft, cybercrime and scams is increasingly concerning.”

The growing popularity of cryptocurrency, exemplified by the price of one Bitcoin reaching $100,000 recently, might be good for savvy investors, but “the hype could lure novices into cryptocurrency scams — with huge potential losses,” says AARP.

The FBI in 2023 received 69,000 complaints about financial fraud involving cryptocurrency. Estimated losses to such crimes totaled more than $5.6 billion — comprising nearly half of the total losses reported for all financial fraud incidents.

People lose money when scammers use dating and messaging apps, social media and other outlets to groom vulnerable targets. They build relationships and promote themselves as having expertise, promising large returns from a crypto investment.

AARP recommends those who are interested in the currency talk to a financial adviser before jumping in.

Confirm the legitimacy of a company pitching crypto by making sure it’s registered with the Commodities Futures Trading Commission and the National Futures Association. Avoid companies with no physical address or customer service line.

Online identity theft

New Mexico comes out No. 1 — tied with three other states and Washington, D.C. — for the highest average financial loss due to online identity theft, says a study by WalletHub.

The ranking, based on 2023 figures, showed New Mexicans lost an average of $14,933. Also tied were Minnesota, South Dakota and Iowa.

Make it a 2025 resolution to take some straight-forward steps that will help protect your identity. For example:

• Keep systems and software up to date and make sure you have a strong and reputable anti-virus program.
• Boost the safety of online accounts by using long passwords that have 12 or more characters, combining numbers, symbols and upper and lower case letters. The Identity Theft Resource Center recommends including a phrase that has meaning to you, making it easier to remember. For example, you could incorporate “2KillaMockingBird” along with some other characters.” Use a unique combination for each account.
• Don’t give out financial information on social media, text or email, and don’t click on links in unsolicited messages.

Still, one expert quoted in the WalletHub study warns that there are always risks.

“… there is no such thing as perfect security, and you should be ready to respond if your identity is stolen,” says Samuel Carter, adjunct computer science professor at North Carolina State University. “Build a plan so you know what actions to take like who to call/notify, have a credit recovery service in place ahead of time to help you and formally report identity theft to the Federal Trade Commission.

“A layered approach is your best guard against identity theft and most other cyber threats.”

Contact Ellen Marks at emarks@abqjournal.com if you are aware of what sounds like a scam. To report a scam to law enforcement, contact the New Mexico Consumer Protection Division at 505-490-4060. Complaints can be filed electronically at nmag.gov/contact-us/file-a-complaint/