This is a reprint of an article originally published in Fast Company authored by Dag Peak.
Getting scammed over the phone isn’t just something that happens to your grandma anymore—it’s happening to all of us. Every day, people across the country are targeted by increasingly sophisticated fraud attempts designed to steal money or personal information. According to the 2024 Public Interest Network report, a fifth (21%) of the adult public falls victim to phone scams each year, with losses around $25 billion. These calls aren’t just disruptive, they’re causing real harm and are chipping away at trust in voice, one of our most relied-upon forms of communication.
For communications service providers (CSPs), the challenge is clear: How do you stop these scams before they reach consumers, especially as scammers become more cunning? Artificial intelligence is quickly becoming a key part of the answer, offering tools that can detect and shut down fraud faster and more accurately.
HOW AI BUILDS A SMARTER FRAUD DEFENSE
AI supports CSPs as they combat fraud in a few powerful ways—by analyzing call data at scale, verifying caller identities, and adapting to evolving scam tactics.
Traditional fraud prevention often relies on static rules or blacklists that quickly become outdated. In contrast, AI can analyze vast streams of data to establish patterns of fraudulent behaviors in near real time. AI systems analyze call metadata—like call duration, frequency, origin, and destination—to detect anomalies like a sudden spike in calls from a suspicious number or geographic region. For example, a fraudulent automated robocall campaign might generate thousands of brief calls in minutes, but AI can quickly identify this pattern, giving the operator an opportunity to block these calls before they reach customers.
However, there is a flaw in this type of fraud prevention, as the AI systems have to make assumptions about the intent of calls before that intention is actually expressed.
Fortunately, there are some new fraud protection systems that can act on fraudulent calls after they get through the first set of filters. With these new systems, real-time AI agents use biometrics to identify unique characteristics in a caller’s voice, instantly verifying identities and stopping impersonators who use tricky engineering to deceive, all while the actual call is happening between the scammer and the customer. This capability is especially important as scammers grow more adept at impersonating trusted contacts.
Additionally, AI systems can understand when the scammer is asking for usernames, passwords, or other personal information, and warn the customer to be careful in divulging sensitive information.
Another powerful AI advantage is adaptive learning. Bad actors are constantly changing tactics, but AI models are trained on diverse datasets to adjust dynamically, enabling them to update detection rules without manual intervention. This continuous evolution is crucial for maintaining effective defenses in a landscape where new scams appear daily.
Lastly, AI-powered fraud detection can integrate with other security layers like network traffic analysis and customer behavior monitoring. By correlating signals across systems, AI builds a more complete picture of risk, improving detection accuracy.
All together, these AI-driven techniques create a multi-layered defense system that not only identifies fraud earlier, but also helps CSPs respond quicker and more precisely, reducing financial losses and preserving customer trust.
HOW TO START SAFEGUARDING YOUR COMPANY
While fully integrating AI solutions can take time and substantial investment, there are simple actions businesses and professionals can take today. Start by enabling AI-based spam and scam call filters built into smartphones and carrier services (these features are often underused but extremely effective). Many communication and CRM platforms now offer AI-driven fraud detection tools and analytics add-ons that can be activated with minimal friction.
Additionally, staying informed through industry newsletters or forums can also help organizations understand emerging threats and how AI is evolving to meet them. Finally, by educating teams and customers about scam tactics and the technologies that can prevent them, businesses build a stronger line of defense from the inside out.
A SAFER PATH FORWARD
No technology offers a silver bullet against phone fraud, but AI’s ability to analyze data at scale, authenticate voice, and learn from new threats makes it a transformative force in the fight. Starting with practical, achievable steps and building towards more sophisticated AI solutions, CSPs can reclaim the security and trust that scammers seek to undermine.
We’ve previously looked at how AI is reshaping the customer experience, generating smarter insights, and now, protecting people from real harm. The potential is immense—but the responsibility is just as great. Telcos that lead with AI won’t just have an advantage. They’ll help define the future of trusted, intelligent communication.
