Americans fell victim to $12.5 billion in fraud losses last year, according to the Federal Trade Commission. That represents a startling 25% increase over a year ago. The FBI estimates the losses are even larger, over $16 billion. So, what explains the sharp increase, considering that most consumers are far more attuned to cybercrimes? Like so many other questions, the answer is artificial intelligence.

Forget the Nigerian Prince scam (although that tired, old routine still separated Americans from nearly $1 million last year). And gone are the days when phishing emails screamed “bogus” thanks to typos and bad translations. Artificial intelligence has entered the arena and is assisting criminals in producing ever more believable and compelling appeals. It is getting nearly impossible to spot a fake, so it becomes even more essential to question everything that comes to you unsolicited.

Here are a few examples of state-of-the-art tactics, thanks to generative artificial intelligence.

Enhanced phishing attacks. Phishing attacks involving unsolicited emails or text messages attempt to convince the recipient to provide personal information that can then be used to hack into bank accounts or steal identities. The crooks can now run a draft of their handiwork through applications like ChatGPT to clean up grammar and spelling but also to scour your social media to personalize the message and make it more conversational and therefore more credible.

Deepfakes. This is a general term describing ultra realistic reproductions of documents, voices or even video messages. A common tactic is producing identification documents like driver’s licenses, birth certificates or title papers that can be used to steal your identity. These phony papers often include realistic elements like watermarks or other AI-generated images that convey legitimacy.

It is now simple for a criminal to clone the voice of a familiar person or even a family member. Victims may be persuaded to send money or grant account access, especially if they believe their friend or loved one is under duress and needs help.

Well-made deepfake videos are now becoming nearly impossible to recognize and are proliferating wildly. They may mimic celebrity endorsers or even replicate a family member to spread misinformation or direct the victim to a fake website. Romance scams are particularly insidious, especially among the senior population, and the scale of the technology allows the attacker to carry on multiple “romances” simultaneously.

Endless variety. Schemes pop up faster than law enforcement can track them. One recent caper involves stealing someone’s identity, enrolling in an online college course using their name and pocketing some of the student loan funds. In some cases, AI chatbots even submitted homework and took exams to maintain the ruse, and some legitimate students have been crowded out of classes because the chatbots filled the seats. And the cyber crime arms race is just heating up.

What to do if you believe you have been victimized. If you suspect that you have been targeted by an internet scammer, it is essential that you report the incident. Security experts believe that most victims fail to report the crime, often out of fear or embarrassment.

Begin by filing an online report with the Federal Trade Commission at ReportFraud.gov. The commission will log your case and provide you with a list of next steps to take to pursue a recovery and to reduce your chances of being scammed again.

If the scam involves your bank account or credit cards, contact the financial institution to notify them of the loss. You may need to close your old accounts and open new ones. Also remember that you are not responsible for fraud losses on credit cards if you report the event promptly.

Ironically, but hardly surprisingly, scammers are impersonating the Federal Trade Commission itself. Note that the FTC will never threaten you or suggest that you transfer or withdraw funds.

You should also report the details to the Internet Crime Complaint Center, known as IC3. This is a central repository run by the FBI that compiles data that is used by law enforcement agencies to investigate cybercrimes, and your input is valuable.

If the attack involved identity theft or if you believe the attacker obtained some of your personal information, visit IdentityTheft.gov (another Federal Trade Commission resource) to report your case and obtain information on how to reclaim control of your information.

Take steps now to reduce your risk. The internet, email and text messaging are places where you should trust no one. Never respond to unsolicited offers, requests or threats. If you are concerned about ignoring potentially valid communications, look up the contact information separately and reach out directly to the company or agency to confirm the communication.

Always use multi-factor identification, like a validation text (preferred) or email to complete a sign in process. Never give your passwords to anyone and be sure to use a unique password for every website you sign into. Many if not most people fail this one. There are also very user friendly applications called password keepers that will track your disparate login information for you.

Finally, it is well worth the effort to initiate a credit freeze with the three major credit reporting bureaus, Experian, Transunion and Equifax. This will block any attempts to access your file and can easily be lifted if you need to apply for credit.

Cyber criminals are constantly innovating, and the old days of clumsy, easily spotted phishing scams are long over. Artificial intelligence has made scams harder to detect and call for even greater vigilance.

Christopher A. Hopkins, CFA, is a co-founder of Apogee Wealth Partners in Chattanooga.