U.S. Officials Address AI and Cryptocurrency Fraud Scams Targeting Americans
Fraud operations using artificial intelligence and cryptocurrency have resulted in significant financial losses for Americans, according to recent reports. The White House has prioritized addressing these scams, including the creation of a new enforcement division. Officials described structured cartel-run networks operating from overseas locations.
The U.S. Food and Drug Administration / Wikimedia (Public domain)Fraud scams employing artificial intelligence to mimic voices and cryptocurrency for fund transfers have led to substantial losses among Americans. An example involves an elderly woman receiving a call that appears to be from her grandson, who requests immediate money.
The voice is generated to sound authentic, resulting in the transfer of savings through accounts and conversion to cryptocurrency.
The FBI issued an alert days ago stating that such scams, often run by fraud cartels, caused over $20 billion in losses to Americans last year. These operations are organized with divisions for collecting data, scripting messages, handling payments, and laundering funds. Some groups later contact victims posing as recovery investigators to extract additional fees.
Southeast Asia, compounds house thousands of workers conducting these scams continuously, targeting individuals in the United States and Europe. Messages are personalized, with follow-up calls to maintain engagement until funds are secured. Artificial intelligence enables personalized outreach at high volume, reducing the need for large teams.
This month, acting Attorney General Todd Blanche outlined efforts to address these fraud cartels as a White House priority under the leadership of President Donald Trump's appointed fraud czar, Vice President JD Vance. Blanche announced the creation of the National Fraud Enforcement Division to investigate these activities.
The operations offer scale and low risk compared to traditional crimes, with no physical shipments involved.
