BioCatch warns that artificial intelligence has the potential to enhance every scam on Earth

In a recent survey conducted by BioCatch, it was revealed that nearly 70% of fraud-management, anti-money laundering, and risk and compliance officials believe that criminals are more proficient in using artificial intelligence to commit financial crimes than banks are in using the technology to prevent them. This alarming trend is further exacerbated by the fact that around half of the respondents reported an increase in financial crime activity over the past year, with expectations of further escalation in 2024.

The report, released today by BioCatch, a leader in digital fraud detection and financial crime prevention, highlights the growing use of AI by criminals with minimal technical expertise to enhance the effectiveness of their scams and schemes. According to Tom Peacock, Director of Global Fraud Intelligence at BioCatch, AI has the potential to personalize scams for individual victims, making them more difficult to detect and prevent.

One of the key findings of the survey is the impact of AI on voice verification, with 91% of respondents reconsidering its use due to AI’s voice-cloning capabilities. Additionally, synthetic identity fraud, identified by over 70% of respondents, is seen as the fastest-growing type of financial crime in the U.S., costing companies billions of dollars annually.

Jonathan Daly, CMO of BioCatch, emphasized the need for new authentication methods in the AI era, highlighting the importance of behavioral intent signals in detecting deepfakes and voice clones in real time to safeguard customers’ assets.

The survey also revealed that financial institutions are increasingly using AI to detect fraud and financial crime, with 87% noting that it has improved their response time to potential threats. However, there is a call for greater collaboration between organizations and government authorities to combat fraud effectively.

As the use of AI continues to evolve in the financial sector, it is clear that new strategies and technologies will be essential to stay ahead of increasingly sophisticated criminal activities.