AI to combat AI-driven fraud
Hello! We’re back with the new edition of Fin AI Briefings. This time, we are focusing on AI-driven fraud, and how AI can help combat it. Let’s dig in!
Increased accessibility to AI is empowering individuals and organizations to be more effective and innovative. It, however, presents serious threats to financial institutions.
The rise of synthetic data and deepfakes is enabling sophisticated fraud at an unprecedented scale, challenging traditional defenses.
AI has been making it easier for malicious actors to create highly convincing fake financial data and identities with startling accuracy. Such AI-driven threats may lead to increased fraud risk, trust erosion, and penalties or sanctions from regulators.
What is the solution?
Modernization of financial processes and fraud detection methods can help combat challenges posed by increased accessibility to AI. Financial institutions must:
Build advanced fraud detection systems
Make onboarding more resilient with AI
Leverage Enterprise AI to improve core workflows
We (Arya AI & Aurionpro) are helping financial institutions install sophisticated fraud detection mechanisms to safeguard against AI-driven fraud such as deepfakes, fake identity, document tampering, and more – while maximizing the benefits of AI.
Capital One Reports 400% Increase In Synthetic ID Fraud [Frank on Fraud]
Joseph C. Portera , Chief Risk Officer at Capital One, stated that one out of 130 auto loan applications appears to be synthetic. The challenge is intensifying, fueled by increased accessibility to Generative AI.
AI Deception: How Generative AI is Being Weaponized for Fraud [Hackernoon]
Misinformation using deepfakes, financial fraud, and online shopping scams: the list of AI-driven fraud is endless. Gen AI is being weaponized for fraud, allowing miscreants to create convincing deepfakes, voice clones, and pedal large-scale fake news, amplifying risks on the internet and the finance sector.
AI helped the feds catch $1 billion of fraud in one year. [CNN Business]
The US Treasury used AI to recover $1 billion in check fraud in fiscal 2024, tripling the previous year's recovery and over $4 billion in total fraud. AI has helped it analyze vast amounts of data to detect patterns and prevent fraud from increasingly sophisticated threats.
Is Your Organization Ready To Deal With AI-Generated Fake IDs? [Arya AI]
Organizations' traditional user authentication and onboarding methods grapple with AI-generated fake IDs. Platforms like OnlyFake are enabling the creation of convincing fake IDs at low cost, making it crucial for organizations to update and strengthen their user onboarding systems.
90% of Online Content Will Be AI-Generated by 2026 [Futurism]
Europol reports that by 2026, up to 90% of online content may be AI-generated, and while synthetic data can enhance gaming, services, and quality of life, it introduces new potential for disinformation via deepfakes and AI-generated media.
Deepfake Laws: How are Regulators Approaching Them and What Should You Do? [Arya AI]
Deepfakes are under the radar of regulators due to the escalating misuse of the technology. While some regions, like California and Texas, have enacted laws targeting election interference and fraud, most countries lack comprehensive frameworks. Read more on how regulators are approaching deepfakes.
AI in the Fight Against Fraud: Evolving Prevention Models to Combat Advanced Threats [Puneet Wadhwa]
Advanced threats like deepfakes require multi-layered, real-time approaches, calling for the use of more capable models. AI is solving this by helping evolve fraud prevention from basic rules to AI-driven models, such as anomaly detection, graph analytics, and behavioral analytics.
FinextraTV: Can Financial Institutions Keep Up with the $33 Billion Fraud Surge? [Finextra Research]
Visa's Tareq Muhmood highlights the evolution of fraud from basic check fraud to today's complex digital threats. He states fraud management shouldn't hinder legitimate transactions, especially with A2A payments. Also, striking the right balance between innovation and security could be the key for adapting to these emerging threats.
RBI To Launch AI System For Real Time Fraud Alerts [Inc42]
The Reserve Bank of India (RBI) is launching "MuleHunter AI," an AI system designed to detect mule accounts and provide real-time fraud alerts for digital transactions. It'll analyze transaction data to flag suspicious activities and prevent fraudsters from cashing out illicit funds.
AI-Driven Account Takeover: Sophisticated or Just Convenient? [Mangopay]
AI has amplified the efficiency and scale of account takeover (ATO) fraud. Traditional ATO tactics, like credential stuffing, social engineering, and keylogging, have long been effective, but they require a lot of time and resources. Now, generative AI and open-source language models make it easier and cheaper for fraudsters, improving speed, convenience, and return on investment.
Synthetic ID Fraud: The Fake IDs That Are Giving Us Real Problems [Chhavi Lamba]
Synthetic identity fraud is becoming a major issue globally, where traditional KYC systems are failing. The need of the hour is newer, advanced methods such as geolocation checks, IP risk scoring, email verification, and device ID tracking, which can flag inconsistencies and suspicious patterns across ID fraud.
Let's hear what our Co-Founder, Deekshith Marla, has to say about AI-driven fraud and tackling AI integration.
If you're at the Singapore FinTech Festival, come visit us at booth #4J20. We will be unveiling a bunch of exciting things to power the next generation of transformations for the finance and insurance sector.
👉 Article - Generative AI is Expected to Magnify the Risk of Deepfakes and Other Fraud in Banking [Deloitte]
👉 Video - Unmask The DeepFake: Defending Against Generative AI Deception [IBM]
👉Article - How Can AI and Collaboration Combat Rising Financial Crime? [Finextra Research]
👉 Video - Fighting Fraud With AI [SASSoftware]
👉 Article - Banking Automation - How Artificial Intelligence is Shaping Modern Banking? [Arya AI]
👉 Article: Guarding the Golden Goose [Corporate Compliance Insights]
👉 Article: Beyond Traditional Rules, Agentic AI Reshapes Banking Compliance [Jesus Olivera]
👉 Article - Deepfake Fraud Alert: Understanding and Mitigating the Digital Deception Threat [Sabine VanderLinden]
👉 Article - Revolut’s Fraud Dilemma: Why Decentralized Identity Is the Real Answer [The Ontology Team]
👉 Article - Identifying Fake Documents [A Complete Guide] [Arya AI]
We hope you enjoyed reading this edition of Fin AI Briefings. Let us know in the comments if you did! Click on the Subscribe button for the new issue.