{"id":237911,"date":"2024-05-09T14:24:02","date_gmt":"2024-05-09T14:24:02","guid":{"rendered":"https:\/\/www.techopedia.com\/?p=237911"},"modified":"2024-05-09T14:24:02","modified_gmt":"2024-05-09T14:24:02","slug":"banks-are-adopting-ai-to-fight-fraud-enhance-services","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/banks-are-adopting-ai-to-fight-fraud-enhance-services","title":{"rendered":"Banks Are Adopting AI to Fight Fraud & Enhance Services"},"content":{"rendered":"

The growing use of artificial intelligence<\/a> (AI) poses a cybersecurity<\/a> threat to banks and other financial service providers \u2014 but it also creates opportunities to enhance compliance<\/a> with fraud prevention<\/a> and data privacy<\/a> regulations.<\/p>\n

Banks are also using the technology to create streamlined, personalized services for individuals and businesses by automating credit checks and targeted marketing.<\/p>\n

But as cybercriminals<\/a> turn to generative AI<\/a> to find new fraud tactics, the financial industry needs to take note and prepare its defenses.<\/p>\n

Derrick Loi, General Manager, International Business at China\u2019s Ant Group Digital Technologies, <\/strong>recently talked through one case at the Digital Economy Summit in Hong Kong.<\/p>\n

Loi cited an instance in January 2024 when a multinational company employee was invited to a conference call with his chief financial officer.<\/p>\n

The person in the conference call looked and sounded like the CFO and asked the employee to wire five transactions totaling 25 million.<\/p>\n

But, if you couldn\u2019t see the twist coming, It turned out the call was a deep fake<\/a>.<\/p>\n

Loi said:<\/p>\n

\u201cIn recent months, we have seen a proliferation of fraudsters using generative AI in order to create deep fake attacks, and that is something we are seeing as an increasingly alarming trend.\u201d<\/p><\/blockquote>\n

Financial firms must now implement \u201cmore advanced predictive AI<\/a> with machine vision<\/a> to mitigate against such attacks,\u201d Loi said.<\/p>\n

Banking has changed massively over the last ten years \u2014 if you think you have a grasp of how it operates, think again, as we explore below.<\/p>\n

\n

Key Takeaways<\/span><\/h2>\n