Published September 15, 2026 by Pawan Jain, an associate professor of finance at the University of Michigan-Flint, this piece examines how AI-powered fraud is driving escalating financial losses, with Americans over 60 accounting for a disproportionate share of the roughly $893 million in AI-related fraud the FBI recorded in 2025. Jain argues personal vigilance alone is insufficient and calls for regulatory reform modeled on the UK’s mandatory bank-reimbursement system, since banks are best equipped to fight fraud but currently lack the financial incentive to fully deploy that capability.
