{"id":5995,"date":"2025-05-18T09:01:48","date_gmt":"2025-05-18T01:01:48","guid":{"rendered":"https:\/\/cicserver.com\/ai-powered-banking-fraud-on-the-rise-but-financial-institutions-are-fighting-back\/"},"modified":"2025-05-18T09:01:48","modified_gmt":"2025-05-18T01:01:48","slug":"ai-powered-banking-fraud-on-the-rise-but-financial-institutions-are-fighting-back","status":"publish","type":"post","link":"https:\/\/cicserver.com\/de\/ai-powered-banking-fraud-on-the-rise-but-financial-institutions-are-fighting-back\/","title":{"rendered":"AI-powered banking fraud on the rise \u2013 but financial institutions are fighting back"},"content":{"rendered":"<p><br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/cdn.mos.cms.futurecdn.net\/zTnssagEhUhxjunkagsJ6Q.jpg\" \/><\/p>\n<div id=\"article-body\">\n<p>More than half of banking fraud now involves the use of AI with banks using the same tools to fight back \u2013 but unlike the criminals, they&#8217;re hampered by ethical considerations.<\/p>\n<p>Research from financial crime prevention platform Feedzai revealed that 92% of financial institutions are seeing fraudsters use <a data-analytics-id=\"inline-link\" href=\"https:\/\/www.itpro.com\/technology\/artificial-intelligence-ai\/369959\/what-is-generative-ai\" data-before-rewrite-localise=\"https:\/\/www.itpro.com\/technology\/artificial-intelligence-ai\/369959\/what-is-generative-ai\">generative AI<\/a>.<\/p>\n<aside data-block-type=\"embed\" data-render-type=\"fte\" data-skip=\"dealsy\" data-widget-type=\"seasonal\" class=\"hawk-base\"\/>\n<p>More than four in ten financial professionals reported that deepfakes are being used in fraudulent schemes, and 56% say that they&#8217;ve been experiencing AI-powered social engineering attacks.<\/p>\n<p>Six in ten said that voice cloning was a major concern, with a similar number citing SMS and <a data-analytics-id=\"inline-link\" href=\"https:\/\/www.itpro.com\/security\/29093\/what-is-phishing\" data-before-rewrite-localise=\"https:\/\/www.itpro.com\/security\/29093\/what-is-phishing\">phishing scams<\/a> using AI.<\/p>\n<p>&#8220;Today&#8217;s scams don&#8217;t come with typos and obvious red flags \u2013 they come with perfect grammar, realistic cloned voices, and videos of people who&#8217;ve never existed,&#8221; said Anusha Parisutham, Feedzai senior director of product and AI.<\/p>\n<p>&#8220;We&#8217;re seeing scam techniques that feel genuinely human because they&#8217;re being engineered by AI with that intention. But now, financial institutions also have to deploy advanced AI technologies to fight fire with fire to combat scams.&#8221;<\/p>\n<p>Financial institutions are fighting back by using AI themselves. Nine in ten are already using AI to detect fraud, and two-thirds have integrated AI within the past two years. Meanwhile, 90% of financial institutions are attempting to prevent fraud with AI-powered solutions.<\/p>\n<div id=\"slice-container-newsletterForm-articleInbodyContent-kUiNZX47zQHbmPHufg2NnQ\" class=\"slice-container newsletter-inbodyContent-slice newsletterForm-articleInbodyContent-kUiNZX47zQHbmPHufg2NnQ slice-container-newsletterForm\">\n<div data-hydrate=\"true\" class=\"newsletter-form__wrapper newsletter-form__wrapper--inbodyContent\">\n<div class=\"newsletter-form__container\">\n<section class=\"newsletter-form__top-bar\"\/>\n<section class=\"newsletter-form__main-section\">\n<p class=\"newsletter-form__strapline\">Sign up today and you will receive a free copy of our Future Focus 2025 report &#8211; the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives<\/p>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<p>And it&#8217;s working, with four in ten saying that AI had helped them cut fraud losses by between 40% and 60%, and 43% that it had led to a 40-60% improvement in efficiency.<\/p>\n<p>A similar number are using AI to expedite fraud investigations and detect new tactics in real-time, with half using it for scam detection, 39% for transaction fraud, and three in ten to combat money laundering. Most said they expected AI-driven behavioral analytics to make an impact on fraud prevention.<\/p>\n<p>However, unlike fraudsters, financial institutions have to take data management and ethical considerations into account. They have to comply with strict privacy regulations such as <a data-analytics-id=\"inline-link\" href=\"https:\/\/www.itpro.com\/it-legislation\/27814\/what-is-gdpr-everything-you-need-to-know\" data-before-rewrite-localise=\"https:\/\/www.itpro.com\/it-legislation\/27814\/what-is-gdpr-everything-you-need-to-know\">GDPR<\/a> and CCPA, while making sure that data isn&#8217;t biased, through the use of diverse datasets, rigorous bias testing, and human oversight.<\/p>\n<p>As a result, nearly nine in ten banks cited data management as their biggest hurdle, with fragmented data sources and regulatory constraints slowing their adoption of AI. Smaller institutions struggled the most.<\/p>\n<p>A similar number said they prioritize explainability and transparency in their AI systems \u2013 critical in regulated areas like AML, where institutions are required to justify their decisions to regulators.<\/p>\n<p>&#8220;In some ways, AI is like a car. When automakers design a car, they don&#8217;t just think about horsepower. They also consider safety features such as seatbelts, airbags, and anti-lock brakes that will keep drivers and passengers safe. The same is true for AI. Models that aren&#8217;t designed with trust at the forefront can lead to significant problems for users,&#8221; said Pedro Bizarro, co-founder and chief science officer at Feedzai.<\/p>\n<p>&#8220;By ensuring that AI decisions are transparent, robust, unbiased, secure, and tested (TRUST), businesses will accelerate innovation and reinforce customer confidence.&#8221;<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>More than half of banking fraud now involves the use of AI with banks using the same tools to fight back \u2013 but unlike the criminals, they&#8217;re hampered by ethical considerations. Research from financial crime prevention platform Feedzai revealed that 92% of financial institutions are seeing fraudsters use generative AI. More than four in ten [&hellip;]<\/p>","protected":false},"author":3,"featured_media":5996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-5995","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blog"},"_links":{"self":[{"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/posts\/5995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/comments?post=5995"}],"version-history":[{"count":0,"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/posts\/5995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/media\/5996"}],"wp:attachment":[{"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/media?parent=5995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/categories?post=5995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cicserver.com\/de\/wp-json\/wp\/v2\/tags?post=5995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}