Financial fraud is getting more sophisticated and expensive. 

The FBI is warning the public about a "phantom hacker" scam that's drained more than $1 billion from seniors' retirement accounts. The fraudsters are going beyond traditional tactics; they've started using AI. 

It can start with a phone call that sounds like a loved one, or maybe it's an email that looks like it's from your bank. Instead, it's artificial intelligence trying to fool you into giving up your money.

"The thought that AI regulate some of these very complex schemes is not a far-fetched thought at all anymore. It's something it's directly capable of doing," said Austin Heeren, treasury manager at Midwest One Bank.

Heeren says seniors have the most cash on hand, making them an obvious target. However, while seniors are typical victims, the rise in AI technology has supercharged online scams and experts say everyone will likely face a fraud attempt at some point.

"It's 73% of Americans," Heeren said. "This is something that affects unanimously everybody, kind of across the board, and it's just, you know, which type of scheme are you going to see and how frequently you're going to be targeted."

So how do you protect yourself? Heeren says to change your passwords regularly, avoid sharing personal information over the phone and, if doubt creeps in, consult a third party.

Heeren adds that if something doesn't feel right or is too good to be true, it probably is. Another sign that something might be wrong is the pressure to close a deal quickly.

"I think with the deep fakes with AI, it's the personal relationships that really are going to balance out and probably save us long term," Heeren said.

Heeren says with the holiday shopping season upon us, now is a great time to keep these tips in mind.

"Just be careful, cognizant, right, of giving out any personal information. Make sure you're changing, kind of, those passwords, and that's on your banking. That's also on your Amazon account, your Kohl's account, anything of, kind of, you know, that nature. And then you know, again, just pause, because I think you know these deals are really good. But you know, with this Black Friday sales lasting a whole month, you really shouldn't be in that much of a hurry," he said.