How Your Small Business Can Stay Safe With AI Scams on the Rise

Imagine getting a call from what sounds exactly like your top client, urgently requesting a wire transfer for an overdue invoice. Or maybe it’s an email from your “CEO” asking for sensitive employee data, looking perfectly legit. You act quickly, only to discover it was a scam powered by artificial intelligence (AI) that’s getting alarmingly effective at fooling us. If this feels like a scenario you’ve heard about—or worse, experienced—you’re not alone. AI scams are surging, hitting small businesses and their customers hard. But don’t worry—KT Connections is here to break it down, with practical tips to keep you and your customers safe.

Why AI Scams Are a Big Deal for Small Businesses

Small businesses are the backbone of our communities, but they’re also prime targets for scammers. Why? Because you’re busy, stretched thin, and often don’t have a dedicated IT team to spot the red flags. AI is making scams more sophisticated than ever, and the numbers back it up. According to the Federal Trade Commission (FTC), consumers reported losing over $8.8 billion to scams in 2022, a 30% jump from 2021, with AI-powered scams like voice cloning and deepfakes playing a growing role. Meanwhile, a 2023 McAfee study found that one in four people globally has either experienced or knows someone hit by an AI voice cloning scam. For businesses, the stakes are even higher—Microsoft’s 2025 Cyber Signals report noted that AI-powered fraud attempts have led to $4 billion in thwarted scams, with 1.6 million bot sign-up attempts blocked hourly.

These scams don’t just hurt your bottom line; they can erode customer trust, damage your reputation, and even lead to legal headaches. Whether it’s a scammer targeting your business directly or tricking your customers into sharing sensitive info, the fallout lands on your doorstep. So, let’s dive into the top AI scams you need to watch out for, what they look like, and how to stay one step ahead.

The Top AI Scams Hitting Businesses and Consumers

AI scams are the new kid on the block—they’re polished, convincing, and dangerously effective. Here’s a rundown of the most common ones, with a peek into how they work and what’s at stake for you and your customers:

Voice Cloning Scams

Imagine getting a call from someone who sounds exactly like your business partner, employee, or even a family member, pleading for urgent funds due to an emergency. AI voice cloning tech can replicate a voice using just a few seconds of audio scraped from social media or voicemails. Scammers use this to impersonate trusted contacts, tricking businesses into wiring money or sharing sensitive data. For consumers, it’s often a “grandchild” or “friend” in distress, tugging at heartstrings to extract cash.

A small business could lose thousands in a single wire transfer—money you can’t always recover. The FTC notes that wire transfers are a favorite for scammers due to loopholes in the Electronic Fund Transfer Act, making recovery nearly impossible. For consumers, it’s not just financial loss but emotional trauma, and they might turn to your business for answers if the scam was tied to your brand.

Deepfake Video Scams

Scammers use AI to create hyper-realistic videos of celebrities, executives, or even you, promoting fake products or investment schemes. These deepfakes might appear in ads, social media, or even video calls, convincing customers to buy nonexistent products or employees to share confidential info.

Your business could face reputational damage if scammers impersonate your brand or staff in fake ads. For consumers, it’s about losing money to scams like fake cryptocurrency investments (a Chicago man lost $60,000 to a deepfake romance scam). Plus, if customers think your business endorsed a scam, they’ll hesitate to trust you again.

AI-Powered Phishing Attacks

Gone are the days of poorly spelled phishing emails. AI now crafts personalized, error-free messages that mimic legitimate businesses or individuals. These emails might trick employees into sharing login credentials or customers into entering payment info on fake websites. Harvard Business Review notes that 60% of people fall for AI-automated phishing, matching the success rate of expert human-crafted scams.

For businesses, a single breach can expose sensitive data, leading to costly downtime or ransomware demands. For consumers, it’s stolen identities or drained bank accounts, often linked to fake websites mimicking your business. The FBI reported $20 million lost to government impersonation scams in Q1 2024 alone.

Fake Websites and Ads

AI can whip up convincing websites or ads in minutes, complete with fake reviews, product descriptions, and images. Scammers use these to sell nonexistent products or steal payment info. Microsoft reports that fraudulent e-commerce sites are a growing threat, often mimicking trusted brands.

Customers who fall for these scams may blame your business if the fake site looks like yours. For your business, scammers could impersonate your brand, diverting sales and trust. The FTC warns that younger generations are 34% more likely to fall for online shopping scams tied to social media ads.

How to Spot and Stay Safe from AI Scams

Now that we’ve painted a picture of what’s out there, let’s talk about how to protect your business and your customers. It’s like locking the doors and setting the alarm before leaving the shop—you’ve got to be proactive. Here are some practical, small-business-friendly tips to stay alert, recognize scams, and keep everyone safe:

Be Skeptical and Verify Everything

Scammers thrive on urgency, whether it’s a “distressed” call or a “limited-time offer.” Pause, take a breath, and verify before jumping into action.

If you get a request for money or data, contact the person through a trusted channel, like their known phone number or email, not the one in the message

Encourage customers to double-check any urgent requests by calling your official number (listed on your website) or visiting your verified site.

Set up a “safe word” for your team or family to verify identities over the phone. It should be unique, not easily guessed (avoid birthdays or street names).

Educate Your Team and Customers

Knowledge is power! Train your employees to spot AI scams, and share tips with your customers to build trust.

Hold a quick training session on recognizing phishing emails (look for odd URLs or overly urgent tones) and voice cloning red flags (like requests for unusual payment methods).

Post scam alerts on your website or social media. For example, warn about deepfake ads using your brand and direct customers to your official channels.

Share resources like the FTC’s fraud reporting site (ic3.gov) or local consumer protection agencies.

Educate Your Team and Customers

Fight fire with fire! AI-powered security tools can detect suspicious patterns in real-time, saving you from costly breaches.

Invest in multi-factor authentication (MFA) and AI-driven fraud detection tools, like those offered by KT Connections, to flag phishing attempts or fake websites. Sift research shows 68% of consumers notice more scams since AI tools became public, so proactive tech is key.

Advise customers to use strong, unique passwords and enable MFA on their accounts to reduce risks from phishing scams.

Partner with a trusted IT provider like KT Connections to implement strong cybersecurity frameworks that keep your data safe.

Limit Data Exposure

The less info scammers can access, the harder it is for them to target you or your customers.

Be cautious about what you share on social media or public platforms. Scammers scrape audio, images, or employee details to craft scams.

Encourage customers to limit personal info shared online and check privacy settings on social media to prevent voice or image cloning.

Freeze your business and personal credit reports to block scammers from opening fraudulent accounts. It’s free and can save you a headache.

Report and Respond Quickly

If you or a customer suspects a scam, act fast to minimize damage.

Report incidents to the FTC (877-382-4357) or your local consumer protection agency. If funds were sent via wire transfer or crypto, contact the provider immediately, though recovery is tough.

Urge customers to report scams to ic3.gov and their bank’s fraud department. Quick reporting can sometimes stop transactions.

Keep a log of suspicious activity to spot patterns and strengthen your defenses.

Running a small business is tough enough without worrying about AI scammers lurking in the shadows. That’s where KT Connections comes in. We get it—you’re not an IT expert, and you shouldn’t have to be. Our team specializes in helping small businesses like yours stay secure with tailored cybersecurity solutions, from AI-driven fraud detection to employee training. We’re here to make sure your business and your customers are protected, so you can focus on the daily needs of your business.

The rise of AI scams is real—$10 billion in fraud losses in 2023, and that number’s climbing. But with a little vigilance, the right tools, and a partner like KT Connections, you can stay one step ahead. Let’s keep those scammers at bay and keep your business growing. Ready to beef up your defenses? Reach out to us today—no pressure, just solutions to keep you safe.