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Cybercriminals are increasingly using artificial intelligence to carry out complex fraud attempts. AI-driven fraud now accounts for more than forty percent of all detected fraud attempts in the financial and payment sector. This places new demands on cybersecurity in the financial sector.
This is evident from the report Fight against AI-driven identity fraud 2024 from digital identity company Signicat. According to the report, almost thirty percent of AI-driven fraud attempts are successful.
According to Signicat, there is a “rapidly escalating threat posed by AI-enhanced fraud tactics, including the use of deepfakessynthetic identities and sophisticated phishing campaigns.” Such advanced techniques allow fraudsters to operate “at an unprecedented scale and with an unprecedented level of sophistication,” the report said.
Many more fraud attempts
42.5 percent of detected fraud attempts are now powered by AI. The financial sector has also seen an eighty percent increase in the number of fraud attempts over the past three years, partly due to increased use of AI by fraudsters. Yet less than a quarter (22 percent) of financial institutions have taken action to implement appropriate fraud prevention measures.
The report advises companies to implement AI-based detection systems, strengthen their cybersecurity and promote greater collaboration within the sector to stay ahead of new fraud techniques. It also underlines the importance of training employees and informing customers about new threats that AI poses around cybercrime.