Better Business Bureau: AI-powered scams on the rise in Wisconsin, driving higher consumer financial losses

Milwaukee, Wis. – According to report data analyzing scams targeting Wisconsinites from January 1 to July 31, 2026, reports mentioning AI jumped 238% compared to 2025. While overall scam reports in the state rose 132%, scams mentioning AI have increased faster and proved more financially impactful.

The average financial loss reported in scam reports mentioning AI surged 618%, climbing from $778.12 in 2025 to $5,586.95 in 2026. Furthermore, more than half (54.5%) of scams mentioning AI involved a financial loss, an increase compared to 2025. The most common loss-related scam type was: 1) Online Purchase/Counterfeit Products (70.8%);  2. Phishing, Investment, and Healthcare/Medicaid/Medicare (8.3% each); 3. Travel/Vacation/Timeshare (4.2%).

The largest reported AI-related scam loss in Wisconsin in 2026 totaled $118,000. In the investment scam, a consumer was persuaded through social media to invest in what appeared to be an AI trading platform. After seeing impressive returns and successfully making a small withdrawal, the victim was convinced to invest more than $100,000 from a 401(k), ultimately losing the funds.

“AI is making scams more sophisticated, convincing and expensive,” said Jim Temmer, CEO of the Wisconsin Better Business Bureau. “Voice cloning, deepfakes and chatbots are helping scammers appear legitimate. Consumers must stay vigilant and should pause, verify through trusted sources and never share sensitive information.”

Key Data Summary: Wisconsin Scam & AI Impact (January to July 2025 vs. 2026)

Metric20252026% Change
Total Scam Reports1,1542,683+132%
Median $ Lost (Overall)$70.00$82.00+17%
Reports Mentioning AI1344+238%
% of Total Reports Mentioning AI1.13%1.64%+46%
% of AI Scam Reports with $ Loss30.77%54.55%+77%
Median $ Loss (Scams Mentioning AI)$46.24$105.67+129%
Average $ Loss (Scams Mentioning AI)$778.12$5,586.95+618%
Max $ Loss (Scams Mentioning AI)$3,000.00$118,000.00+3,833%

BBB identified six key ways scammers are using AI to target consumers across Wisconsin:

  1. AI-generated voices make impersonation scams more convincing and scalable. Scammers are using AI-powered voices in robocalls and fake communications to impersonate trusted individuals or organizations. Consumers reported receiving frequent calls and messages featuring “very convincing” AI voices.
  2. AI-generated content creates a false sense of trust. Scammers are using AI-generated ads, images and written content to make fake businesses, websites and offers appear more legitimate. Consumers reported encountering websites with AI-written text and stock images designed to appear credible.
  3. AI chatbots create barriers and delay access to real help. Scammers and dishonest businesses are using AI assistants that keep consumers from reaching a live person, making it harder to cancel orders, resolve issues or get answers.
  1. AI deepfakes create fake endorsements and emotional appeals. Scammers are using AI-generated videos, images and stories to make false celebrity endorsements, fake product promotions and emotional donation requests appear legitimate.
  2. AI is being used in investment scams. Scammers are promoting fake AI trading platforms and using false account growth or profit claims to convince consumers to invest more money.
  3. AI helps create fake documents and business identities. Scammers are using AI and other digital tools to produce fake legal documents, invoices and materials designed to make fraudulent businesses appear legitimate.

Red Flags to Watch For:

  • No easy way to reach a real person. Be cautious when AI chatbots prevent you from getting help or resolving an issue.
  • Celebrity endorsements or emotional stories that seem too good to be true. AI-generated ads and videos can make fake offers appear legitimate.
  • Persistent automated calls that sound real. AI-generated voices can convincingly impersonate trusted individuals or organizations.
  • Requests for personal or financial information. Never share banking details, passwords or sensitive information with unexpected contacts.
  • AI investment opportunities from unknown companies. Be cautious of promises of guaranteed profits or rapid returns.
  • Unverified information from AI search tools or social media. Always confirm important information through trusted, official sources and never share sensitive, personal or financial details.

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For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on FacebookTwitterInstagram and YouTube.

ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for more than 110 years. In 2024, people turned to BBB.org more than 220 million times for BBB Business Profiles on 5.5 million businesses, and 725,000 times for BBB charity reports on 12,000 local and national charities. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada.