BioCatch, a global leader in digital-fraud detection and financial-crime prevention, releases its inaugural annual report on AI’s impact on digital fraud and financial crime.
The report reveals concerning trends, with criminals increasingly using artificial intelligence to enhance the quality and success of their scams, while financial institutions struggle to keep pace with AI-powered attacks.
1. AI-Powered Financial Crime
The report highlights that criminals are leveraging artificial intelligence to improve the effectiveness of digital-banking scams and financial crime schemes.
2. Growing Concerns
Nearly 70% of surveyed fraud-management officials indicate that criminals are more adept at using AI for financial crime than banks are at stopping it.
3. Increase in Financial Crime
Around half of respondents report an increase in financial crime activity in the past year, with expectations for further increases in 2024.
4. Voice-Cloning Threat
AI’s voice-cloning abilities have led to concerns, with 91% of respondents rethinking the use of voice-verification for big customers.
5. Synthetic Identity Fraud
More than 70% of surveyed companies identified the use of synthetic identities, a rapidly growing type of financial crime.
6. Challenges in Authentication
Traditional methods of identity verification are deemed insufficient, with the need for new authentication senses to combat deep fakes and voice-clones.
7. Financial Impact
Over half of organisations represented in the survey reported losses between $5 and $25 million to AI-powered attacks in 2023.
