Fraud in the age of AI: How scams are evolving – and how to stay protected

Scams were once easy to identify. The poor grammar or too-good-to-be-true offer were the red flags that you could very easily spot. But these days it’s become more sophisticated. 

Artificial intelligence (AI) is fundamentally changing what financial fraud looks like and, scarily, how convincing it can be. Today’s scammers are more prolific, sophisticated, more personalised and harder to detect. It’s this shift that carries real financial stakes. 

The new face of scams

AI has lowered the barrier to creating highly convincing fraudulent content. Voice cloning technology can replicate a voice from as little as a few seconds of audio. Deepfake video can render a convincing likeness of a trusted person on a call. Phishing emails, once easy to dismiss for their obvious errors, now mirror the formatting, tone and logos of legitimate institutions with unsettling accuracy.

But perhaps the most under-recognised shift is in personalisation. Scammers no longer need to cast a wide net with generic messages. They harvest publicly available information – names of family members, upcoming life events, holiday photos from social media profiles and weave them into communications that feel intimately familiar.

Many of our clients are still active Facebook users, with profiles that include family names, announcements, photographs and other things like mother’s maiden name and pet names. Scammers can use exactly that kind of information to craft messages that feel entirely legitimate. And that is what makes them so effective.

The ‘Hi Mum’ scam is a prime example. A message arrives from an unfamiliar number, claiming to be from your child who has lost their phone and urgently needs money. The message uses their real name. It’s only natural to want to help them. 

The biggest change isn’t the number of scams – it’s how realistic they now appear.

Why pre-retirees and recent retirees are particularly targeted

Those approaching or in retirement are at a stage of life that makes them vulnerable to fraudsters. Superannuation balances are typically at their peak. Access to lump sums – through transition to retirement strategies, pension drawdowns, property sale proceeds or self-managed super fund (SMSF) withdrawals – is at its greatest. Fraudsters know this and they design their approach accordingly.

There is also a values dimension at play. Many in this cohort have a deep, instinctive commitment to caring for their families. Scams that invoke a child in distress, a partner stranded overseas or an urgent family emergency are specifically designed to exploit that instinct. It’s all about bypassing rational judgement by triggering an emotional response.

The psychology behind successful fraud

The most effective scams layer urgency with authority. A message claims your account has been compromised and demands immediate action. A call arrives from someone purporting to be your financial adviser, pressing for a rapid fund transfer. An ATO invoice arrives with a payment deadline and a warning of penalties.

This is not how legitimate advisers communicate. Particularly when it comes to withdrawing or moving money, we would never apply that kind of pressure in the first instance. While there can be time-sensitive portfolio decisions – such as managing a position ahead of a market event – these always involve movements within existing accounts. An unsolicited request to transfer funds to an external party should always raise suspicion.

Pressure is a red flag. Always.

A practical framework for protection

Protecting your financial security doesn’t require paranoia, it requires structure. Here are the habits I recommend to clients:

• Stop, pause and verify. Never act immediately on a message that involves financial information, account access or fund transfers. If you receive something that appears to be from Apt Wealth Partners – or any institution – do not use the contact details in that message. Look up the known number independently and call directly.
• Don’t click unfamiliar links. Hover over links in emails to verify they lead where they claim. If anything looks unusual, don’t proceed. Call your adviser first.
• Enable two-factor authentication. Activate this wherever available on banking, email and investment accounts. It is one of the most effective steps you can take to prevent unauthorised access.
• Consider a family code word. I’ve heard of families agreeing on a private word to use if contact is needed through an unfamiliar channel. This is particularly useful when someone is travelling overseas.
• Monitor your accounts regularly. Review statements for unfamiliar transactions. Early detection matters enormously.
• Limit your digital footprint. Review the privacy settings on your social media profiles. Consider what personal information, including family names, travel plans and financial milestones, is visible to people outside your immediate circle.
• Ask questions freely. If you receive anything from us that feels unusual, call our office on a known number. We would far rather you check, even if the message is genuine, than trust something that wasn’t from us.

How we protect you

At Apt, we maintain strict internal protocols designed to protect our clients and their accounts. Any unexpected withdrawal request or change to nominated bank details—whether received by email, SMS, or written form is treated as potentially suspicious.

In these situations, we will always speak directly with the client and complete our verification process before any action is taken.

This process has caught fraudulent attempts on client accounts. In one case, a client’s email was compromised, and a fraudulent withdrawal request was submitted, forged with a copied signature and directed to an unfamiliar bank account. We identified the attempt when we called the client directly and they had no knowledge of the request whatsoever.

Most of our clients have experienced this verification process when making a withdrawal. It can feel like an extra step, but it is one we take seriously and one that exists entirely to protect you.

Vigilance is part of wealth management

Protecting your long-term financial security is not just about investment strategy. It is about recognising that the threat landscape has changed and that a single moment of misplaced trust can have consequences that are difficult and sometimes impossible, to reverse. It is much easier to avoid one of these events than to correct course after the fact.

We don’t want to spark anxiety, but awareness is important. Simple habits, a healthy scepticism and the confidence to ask questions are among the most powerful tools available to protect what you’ve worked hard to build.

At Apt, our purpose is to help you live your best life and that means being a partner not just in growing and managing your wealth, but in helping protect it. If you have any questions about account security or would like to review your financial protection practices, please reach out to your Apt adviser.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.