(NerdWallet) – In the list of things you want to be doing around the holidays, fending off scam artists has to be at the bottom. And yet, the holidays can be a prime time for scammers hoping to take advantage of the busy season. One fraudulent transaction is easily overlooked in a bank statement full of gift purchases, and there may not be time to dispute suspicious charges when you’re hosting out-of-town guests.
Research-based advisory firm Javelin Strategy & Research defines an identity fraud scam as a tactic that a criminal uses to steal someone’s personal information for the purpose of illegal financial gain. Consumers lost $43 billion in 2022 to these scams, according to Javelin’s 2023 Identity Fraud Study.
If there’s good news, it’s that there were fewer reported victims of identity fraud in 2022 as compared with 2021, with a 17% decrease in the amount of money lost to scams. The bad news is that scammers have become more sophisticated in their methods and have a new tool in their arsenal: artificial intelligence. AI programs can be used to generate scam emails, text messages or audio recordings that mimic the speech of loved ones.