AI Scam Surge: 148% More Impersonations

Cybercriminals continue to evolve, and their tactics become increasingly sophisticated every day. According to a recent report by the Identity Theft Resource Center (ITRC), impersonation scams have skyrocketed by 148%. Criminals now exploit powerful generative AI (GenAI) tools to deceive even the most vigilant business owners.

Between Q1 2024 and Q1 2025 alone, businesses reported over 9,000 impersonation scams. More than half of the victims (52%) said someone misused their personal information, while 35% experienced a full data compromise. Checking accounts remain the top target, representing 22% of reported takeovers.

What Are Impersonation Scams?
In impersonation scams, criminals pretend to be someone you know and trust, such as a company executive, co-worker, vendor, client, government official, or financial institution. Their goal? Trick you or your employees into revealing sensitive information or sending money.

These scams take several forms:

• CEO Fraud – A scammer impersonates your CEO or manager and urgently requests a wire transfer or confidential data.
• Vendor Impersonation – Fraudsters mimic your suppliers or contractors to reroute invoice payments into fraudulent accounts.
• Client Impersonation – Criminals pose as loyal clients needing a rush order or refund, resulting in fraudulent charges.
• Government or Bank Impersonation – Scammers pretend to represent tax authorities or banks and threaten penalties to steal your credentials.
• Tech Support Impersonation – Fraudsters act as IT support to trick employees into giving remote access to your business systems.
• Why Business Owners Must Take Action
• Impersonation scams don’t just target individuals—they threaten entire businesses. One wrong click, an unauthorized wire transfer, or a mishandled request for sensitive information can lead to devastating financial losses, damaged reputations, and potential legal consequences.

How to Recognize Impersonation Scams

Spotting red flags early can help prevent costly mistakes. Watch for:

• Unusual Payment Requests – If a vendor suddenly asks for payment to a new account, call them using a verified number to confirm.
• Urgent or Threatening Messages – Scammers often create a false sense of urgency. If a message says, “You must act NOW,” pause and verify.
• Email Domain Mismatch – Check email addresses carefully. Scammers use lookalike domains, like john@yourcornpany.com instead of john@yourcompany.com.
• Requests for Sensitive Info – Legitimate partners will never ask for passwords, tax IDs, or login credentials through email or text.

Smart Ways to Protect Your Business

• Take proactive steps to defend against impersonation scams:
• Train Your Team Regularly – Host workshops or webinars to teach employees about emerging scam tactics.
• Enable Multi-Factor Authentication (MFA) – MFA adds a layer of security even if someone steals your login credentials.
• Never Share One-Time Passwords or Codes – Treat OTPs and verification codes like cash—keep them private.
• Verify Requests by Phone – When in doubt, call the person directly using a known number before acting on financial or sensitive requests.
• Review Your Cyber Insurance Coverage – Ensure your policy includes protection against fraud and social engineering attacks.
• Report Suspicious Activity Immediately – The faster you report, the better your chance to contain the damage.

Stay Ahead of Evolving Threats

As scammers grow more sophisticated, businesses must stay vigilant. Make impersonation scam awareness part of your company’s daily routine.
Need help evaluating your cyber risks and ensuring you’re fully protected? Call Klinger Insurance Group today at 301-428-4935 or visit www.klingerinsurancegroup.com. We’re here to help your business stay secure in the age of AI.