Financial institutions face rising threat from sophisticated AI fraud

In the world of finance, artificial intelligence has emerged as both a tool and a generator of new problems. It brings forth innovation, productivity and efficiencies for companies, however, it has also introduced sophisticated challenges that many financial institutions are unprepared to address., many financial institutions have struggling with a lack of tools to accurately identify and segregate AI fraud from other types of fraud.

Jacoby said the combination of legitimate personal identifiable information — like social security numbers, names, and birthdates — with socially engineered email addresses and legitimate phone numbers makes detection by legacy systems nearly impossible. According to the Deduce CEO, the challenge with solutions is that technology is advancing rapidly, and therefore, so is the skill set of those committing AI fraud. This means that financial institutions must be on top of their game now to understand where AI comes into play in such cases of fraud.

“By layering solutions, utilizing massive data sets to identify patterns, and more accurately analyzing trust scores, this type of fraud can be better mitigated.” Jacoby stressed that fraud has surged by 20% year-over-year, with the rise of AI significantly increasing the prevalence of synthetic identities.

Source: Tech Daily Report (techdailyreport.net)

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