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AI Fraud Reporting Hits Record Highs in Wisconsin
Recent analysis by the Simmrin Law Group indicates that Wisconsin is now the leading US state for AI-related scam reports. In 2025, Wisconsin recorded 21.30 AI-related complaints per 100,000 residents, a figure that dwarfs the national average of 5.56.
This trend is accelerating. Data from the Wisconsin Better Business Bureau (BBB) shows that between January and July 2025, there were 13 scam submissions mentioning AI. During the same window in 2026, that number climbed to 44—a 238% increase.
While overall scam submissions rose by 132% (from 1,154 to 2,683), AI-specific fraud is growing at a significantly faster rate.
Financial Impact and the "Average vs. Median" Gap
The financial severity of these scams is intensifying. The share of AI-related submissions involving actual financial losses rose from 30.77% in 2025 to 54.55% in 2026.
There is a stark contrast between the median and average losses, illustrating how a few high-value scams skew the data:
- Median Loss: Rose from $46.24 to $105.67 (approx. 129% increase).
- Average Loss: Jumped from $778.12 to $5,586.95 (approx. 618% increase).
The dramatic spike in the average loss was primarily driven by a single AI trading platform scam resulting in a $118,000 loss. This underscores a critical risk: while most AI scams involve modest sums, individual cases can be financially devastating.
Reporting Frequency vs. Actual Financial Loss
Interestingly, high reporting rates do not always correlate with the highest financial damage. While Wisconsin ranks first in complaints per resident, it ranks only 27th for population-adjusted financial losses.
In contrast, Connecticut ranks 27th for reporting frequency but second for financial losses, with $437,801 lost per 100,000 residents. This suggests that some states may have a culture of reporting smaller incidents, while others experience fewer but far more severe financial hits.
National Scale and Travel Implications
The broader US landscape reveals a massive systemic issue. In 2025, the FBI recorded 22,364 AI-related complaints nationwide, totaling approximately $893.3 million in losses.
This surge in digital fraud has direct implications for the travel sector. As consumers increasingly use AI-driven platforms to book flights, hotels, and rental cars, they are exposed to:
- Fraudulent accommodation listings.
- Fake customer service accounts.
- Sophisticated online booking fraud.
AI-Related Scam Reporting by State (2025)
| Rank | State or District | Reports per 100,000 Residents |
|---|---|---|
| 1 | Wisconsin | 21.30 |
| 2 | Florida | 9.30 |
| 3 | Nevada | 8.38 |
| 4 | Montana | 8.30 |
| 5 | Washington | 7.79 |
| 6 | Maryland | 7.74 |
| 7 | District of Columbia | 7.21 |
| 8 | California | 7.08 |
| 9 | Arizona | 6.79 |
| 10 | Oklahoma | 6.72 |
| — | US National Benchmark | 5.56 |
Source: Simmrin Law Group analysis of FBI IC3 2025 state reports and US Census Bureau population estimates.
Key Takeaways
- Wisconsin’s Dominance: Wisconsin's reporting rate (21.30) is 3.83 times the national average and 8.42 times higher than Louisiana's (2.53).
- Rapid Growth: AI-related scam mentions in Wisconsin grew by 238% between early 2025 and early 2026.
- Financial Volatility: While the median loss is relatively low ($105.67), high-ticket scams like AI trading platforms can lead to six-figure losses.
- National Toll: AI scams cost US consumers nearly $893.3 million in a single year.
FAQ
Does a high reporting rate mean Wisconsin has the most AI crime? Not necessarily. High numbers can reflect greater public awareness and a higher tendency for residents to report crimes, rather than a higher volume of actual criminal activity.
How does AI impact travel bookings? AI is being used to create more convincing fake websites, fraudulent customer service bots, and deceptive rental listings, making it harder for travelers to distinguish legitimate platforms from scams.
What is the difference between the average and median loss in these reports? The median ($105.67) represents the middle value of all losses, showing what a typical victim loses. The average ($5,586.95) is skewed upward by a few massive losses, such as the $118,000 trading scam.
