FTC Warns of AI-Powered Loan Scams Costing Americans $470 Million

Scammers are increasingly exploiting advanced technology like AI and voice cloning to impersonate loved ones and manipulate victims into financial scams, as highlighted by experts including Sherri Davidoff and Kyle Rohll from Clearwater Credit Union. The Better Business Bureau (BBB) has issued warnings about various scams targeting vulnerable populations, such as fraudulent billing practices by Centennial Medical Supplies involving Medicare, and donation scams preying on families affected by SNAP benefit losses during the government shutdown. During Medicare open enrollment, scammers pose as legitimate brokers to extract personal information or fees, so consumers are advised to be cautious and avoid sharing Medicare numbers or paying fees for assistance. Loan scams via SMS are rapidly rising, with scammers using sophisticated AI-generated texts and stolen data to lure individuals into fake loan offers, resulting in significant financial losses reported to the FTC. Overall, these scams rely heavily on urgency, emotional manipulation, and impersonation, making awareness and vigilance critical for protection.