Protect Against Fraud: A Greater Challenge Today Than Ever

TLDR:

• Fraud is becoming increasingly challenging to combat due to the emergence of Generative AI (Gen AI), which allows fraudsters to create fake identities and clone voices.
• The Association of Certified Fraud Examiners (ACFE) found that around 5% of corporate revenue is lost to fraud each year, totaling $4.7 trillion globally.
• Cybersecurity and data breaches, as well as financial pressures, are driving an increase in financial crime risks.
• Gen AI is not only enabling fraudsters, but also providing organizations with more intelligent tools to detect and combat fraud.
• Financial services firms are grappling with payment card fraud, authorized push payment fraud, and phishing attacks.
• Collaboration and accountability across all players in the ecosystem are required to effectively prevent fraud.

Tom Chapman writes that fraud is becoming increasingly challenging to combat due to the emergence of Generative AI (Gen AI). Fraudsters are using this technology to create fake identities, clone voices, and carry out illicit activities. The Association of Certified Fraud Examiners (ACFE) found that approximately 5% of corporate revenue is lost to fraud each year, amounting to $4.7 trillion globally. Cybersecurity and data breaches, as well as financial pressures, are driving an increase in financial crime risks. Despite the challenges posed by Gen AI, it is also enabling organizations to have more intelligent tools to detect and combat fraud. Financial services firms are struggling with payment card fraud, authorized push payment fraud, and phishing attacks. Collaborative efforts and shared responsibility among all players in the ecosystem are necessary to effectively prevent fraud and manage risk. Fintech firms, industry players, government bodies, and regulatory authorities should work together to identify, prevent, and deter fraud. Chapman emphasizes the importance of having the right people and the right mindset, in addition to the technology, to effectively protect against fraud and manage risk in the rapidly changing landscape.