More than 50% of fraud involves the use of artificial intelligence
Feedzai, the global leader in AI-native financial crime prevention, today released its 2025 AI Trends in Fraud and Financial Crime Prevention report, uncovering how generative AI (GenAI) is used in financial fraud.
0
More than 50% of fraud involves the use of artificial intelligence. Generative AI has emerged as a powerful tool for criminals, enabling the creation of hyper-realistic deepfakes, synthetic identities, and AI-powered phishing scams. Financial institutions are quickly catching on, with nine in ten banks already using AI to detect fraud, and two-thirds have integrated AI within the past two years. The Feedzai latest report revealed that 90% of financial institutions are combating emerging fraud with AI-powered solutions to safeguard consumers and counter rising threats.
While banks are adopting AI to combat fraud, they face significant roadblocks in implementation, especially ensuring the technology is ethical and transparent. In contrast, criminals using AI focus solely on exploiting the technology for illegal gain, without the constraints that banks face in adhering to strict ethical and regulatory frameworks.
The Speed and Scale of Deception
92% of the financial institutions surveyed indicate that fraudsters use generative AI, and only 8% noted that they do not see GenAI being used by criminals.
According to the report, 44% of financial professionals report that deepfakes are used in fraudulent schemes, and 56% of professionals cite social engineering, a set of manipulative tactics used by fraudsters to exploit human psychology and trick individuals into revealing sensitive information, as another significant tactic powered by AI.
Fraudsters are also utilizing voice cloning techniques, with 60% of professionals recognizing this as a major concern, followed by 59% citing SMS and phishing scams powered by AI to deceive victims.
AI-driven fraud tactics, including deepfakes, social engineering, and voice cloning, often result in account takeovers and scams, which, as unauthorized fraud, are generally reimbursable under most circumstances and harder to detect. While deepfakes alone don't provide direct access to accounts, they play a critical role in building trust during the entrapment stage of scams, where criminals deceive victims into believing they are dealing with legitimate parties.
'Today's scams don't come with typos and obvious red flags—they come with perfect grammar, realistic cloned voices, and videos of people who've never existed,' said Anusha Parisutham, Feedzai Senior Director of Product and AI. 'We're seeing scam techniques that feel genuinely human because they're being engineered by AI with that intention. But now, financial institutions also have to deploy advanced AI technologies to fight fire with fire to combat scams
Top challenges: Data Management and Ethical Consideration
Banks use AI to fight fraud, but they face more obstacles in ensuring it's ethical and transparent, while criminals exploit AI without such concerns.
Despite AI's proven benefits, data management remains a significant challenge for financial institutions. 87% of banks cite data management as their biggest hurdle, with fragmented data sources and regulatory constraints slowing AI adoption, particularly among smaller institutions.
As AI becomes essential in fraud prevention, ethical considerations are paramount. The report finds that 89% of banks prioritize explainability and transparency in their AI systems, demanding governance frameworks that ensure fairness, security, and accountability. Feedzai's TRUST Framework was developed to help financial institutions build AI systems that are transparent, unbiased, and secure.
'In some ways, AI is like a car. When automakers design a car, they don't just think about horsepower. They also consider safety features such as seatbelts, airbags, and anti-lock brakes that will keep drivers and passengers safe. The same is true for AI. Models that aren't designed with trust at the forefront can lead to significant problems for users,' said Pedro Bizarro, Ph.D., Co-Founder and Chief Science Officer, Feedzai. 'By ensuring that AI decisions are transparent, robust, unbiased, secure, and tested (TRUST), businesses will accelerate innovation and reinforce customer confidence.'
AI-Powered Defense: Banks Leverage AI to Combat Fraud and Enhance Efficiency
In the face of criminals using AI, banks also embrace it as a central defense mechanism. The report reveals that 90% of financial institutions use AI to expedite fraud investigations and detect new tactics in real-time. AI is used for scam detection (50%), transaction fraud (39%), and anti-money laundering (30%), positioning it as the critical tool in the battle against financial crime.
Looking ahead, AI will not replace human roles but will continue to augment them. Forty-three percent of financial professionals report increased efficiency within fraud teams, allowing experts to focus on higher-value, complex fraud cases. As AI evolves, the future will see even more powerful AI-powered solutions, such as behavioral analytics and real-time anomaly detection, to stay ahead of emerging threats.
By embracing specialized AI, banks are able to work harder and smarter in combating fraud-based threats, increasing both the reach and efficiency of their defenses. AI has become a critical tool in enabling financial institutions to detect fraud at scale, but human oversight remains essential to ensure its responsible use. While the road to full AI adoption remains challenging, the right technology and frameworks will continue to redefine fraud prevention and bolster security for consumers and institutions alike.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
42 minutes ago
- The Independent
Katie Miller, Stephen Miller's wife, in a ‘tricky situation' after Musk and Trump's falling out
Katie Miller, the wife of White House Deputy Chief of Staff Stephen Miller, recently departed from the Trump administration to work for Elon Musk, days before the spectacular falling out between President Donald Trump and the billionaire. The 33-year-old Miller was one of Musk's first hires as he established the Department of Government Efficiency and began reducing the federal workforce. She left the administration alongside him last week. Like Musk, she was designated as a 'special government employee' during her time in government, which allowed her to work for Musk and Trump, as well as in the private sector, simultaneously. Miller even helped to set up the departing press conference in the Oval Office featuring Musk and Trump, according to The Wall Street Journal. Musk and Trump's relationship fell apart in public on Thursday, with Musk unfollowing Stephen Miller on X. Friends of Miller told the paper that she was in a difficult position between Trump and Musk. 'Katie Miller was a critical reason DOGE was able to get off the ground and deliver massive cuts to waste, fraud, and abuse for the American people,' White House Press Secretary Karoline Leavitt told the outlet. This isn't the first time that Miller has been caught in the crossfire of a Trump feud. Miller also worked for then-Vice President Mike Pence when Trump began attacking him for not aiding him in his attempt to overturn the 2020 election towards the end of his first term. However, at the time of the January 6, 2021, Capitol riot, she was on maternity leave. In December last year, Miller became one of the first DOGE staffers announced by the then-president-elect. However, her work at DOGE soon became the catalyst for disagreements with the White House, where top Trump aides argued that she hadn't sufficiently convinced Musk to work alongside the administration. Top administration officials told The Journal that she often spoke on behalf of Musk, issued orders about what agencies should do, and how the government's work should be communicated. Officials were concerned about her continuing work for P2. However, she left the firm after The Journal published an article about her work there. She then also departed the White House to work for Musk, just before the blowup between the billionaire and the president. Miller has been described as having endless energy and as being fiercely protective of her husband. Current and previous co-workers told The Journal that she could go from charming to abrasive. Those who know her told the paper that she has a 'YOLO' tattoo on the inside of her lip. Miller has at times worked for clients while lobbying the government, simultaneously addressing government issues. She quickly rose through the ranks after being hired in 2015 by Republican U.S. Sen. Steve Daines of Montana. Former Daines aide Jason Thielman told The Journal that 'Everything was always at full speed, full throttle.' 'Sometimes, she just exhausted people, and they gave her what she wanted,' he added of her battles with reporters. She joined the Department of Homeland Security during Trump's first term before working for Pence. It was during her time at DHS that she met Stephen Miller. 'Every Trump White House had its divisions, but she was always willing to go to bat to protect the VP's prerogatives,' Pence's Chief of Staff Marc Short told the paper. Following the insurrection, Stephen Miller kept working for Trump, and she remained in Pence's office. While she was placed on Pence's postpresidential payroll, partly because she needed healthcare, according to Pence's advisors, his office subsequently severed connections with her after Stephen Miller began working with then-President Trump. He continued to target his former vice president. After joining the Republican consulting firm P2 Public Affairs following Trump's 2021 departure from office, she subsequently became the top point of contact between Musk and the 2024 Trump campaign. She often joined Musk at events and then began advising Robert F. Kennedy, who later became Secretary of Health, Education, and Welfare, now known as Secretary of Health and Human Services. Pence opposed Kennedy's appointment, and in January of this year, Miller took aim at her former boss, saying that he only had 'family values' when it was 'politically expedient' and called him a 'footnote of American history.'
Geeky Gadgets
2 hours ago
- Geeky Gadgets
Your iPhone Will Thank You: 12 Things to Quit Doing
Your iPhone is a versatile and powerful device, but certain habits can undermine its performance, security, and longevity. Many users unknowingly engage in practices that expose their devices and personal data to unnecessary risks. By identifying and addressing these behaviors, you can ensure your iPhone operates efficiently and securely. Below are the key habits you should stop immediately to protect your device and enhance its functionality in a new video from AppleDsign. Watch this video on YouTube. 1. Neglecting Lock Screen Optimization The lock screen is more than just a gateway to your iPhone—it's a critical tool for usability and security. If you're still relying on default shortcuts like the camera but rarely use them, consider customizing the lock screen to better suit your needs. Replace unused shortcuts with frequently accessed tools, such as the Calculator, Voice Memos, or even a smart home app. Additionally, simplify gestures to quickly toggle features like Focus Mode, which helps you manage notifications without distractions. A well-optimized lock screen not only saves time but also improves your overall user experience. 2. Using Weak Passcodes Weak passcodes, such as '123456' or '000000,' leave your iPhone highly vulnerable to unauthorized access. Upgrade to a strong alphanumeric passcode to enhance security. For an additional layer of protection, enable Face ID or Touch ID. These measures are especially important in public spaces where someone could observe you entering your passcode. For sensitive apps like banking or email, consider using unique passcodes or biometric authentication to safeguard your personal data in case of a breach. 3. Ignoring Privacy Settings Your iPhone's privacy settings are a powerful tool for protecting your personal information. If you haven't already, disable app tracking in the 'Privacy & Security' menu to prevent apps from collecting unnecessary data. Turn off 'Share iPhone Analytics' to stop sending usage data to Apple. These adjustments not only safeguard your privacy but can also improve battery life by reducing background activity. Regularly reviewing and updating your privacy settings ensures that your data remains secure. 4. Mismanaging Battery Charging Improper charging habits can significantly shorten your iPhone's battery lifespan. Avoid charging your device to 100% regularly; instead, aim to keep the battery level between 20% and 80% for optimal health. Enable 'Optimized Battery Charging' in the settings to slow battery wear over time. Additionally, stop force-closing apps unnecessarily, as reopening them consumes more power than leaving them idle in the background. If your iPhone has an Always On Display feature, consider disabling it to conserve battery life when the phone is not actively in use. 5. Skipping Software Updates Delaying iOS updates can expose your iPhone to security vulnerabilities and performance issues. Apple regularly releases updates that include critical bug fixes, security patches, and performance optimizations. Make it a habit to check for updates and install them promptly. Keeping your software up to date ensures your device remains secure and operates smoothly. 6. Using Public Wi-Fi Without Precautions Public Wi-Fi networks, while convenient, pose significant security risks. They can expose your data to hackers, especially on unsecured connections. Avoid using public Wi-Fi whenever possible, or enable a VPN to encrypt your data and protect sensitive information like passwords and financial details. This simple precaution can prevent unauthorized access to your personal information. 7. Charging on Public USB Ports Public USB charging ports may seem harmless, but they can be exploited for 'juice jacking' attacks, where hackers compromise your device through the connection. To avoid this risk, always carry your own charging cable and adapter or use a portable battery pack. These small adjustments can protect your device from potential security threats. 8. Overlooking App Permissions Many apps request permissions they don't actually need, which can compromise your privacy. Regularly review your app permissions in the 'Privacy & Security' menu. Revoke access to sensitive features like your location, microphone, or camera for apps that don't require them. This not only protects your privacy but also reduces unnecessary background activity, improving overall device performance. 9. Allowing Too Many Notifications Excessive notifications can be both distracting and detrimental to your iPhone's battery life. Take control of your notification settings by customizing them for each app. Disable notifications for non-essential apps and group alerts to minimize interruptions. This simple adjustment can help you stay focused while extending your device's battery life. 10. Forgetting to Back Up Your Data Failing to back up your iPhone regularly puts your data at risk of being lost due to accidental deletion, hardware failure, or other issues. Use iCloud or an external storage solution to back up your data automatically. Regular backups ensure that you can recover important files and information if something goes wrong, providing peace of mind. 11. Keeping Unused Apps Unused apps take up valuable storage space and can slow down your device. Periodically review your app library and delete apps you no longer use. For apps you rarely need but don't want to lose, consider offloading them. This feature allows you to free up storage space while retaining the app's data for future use. 12. Ignoring Storage Management Running out of storage can lead to sluggish performance and prevent you from downloading updates or taking photos. Regularly check your storage usage in the Settings app and clear out unnecessary files, such as old messages, duplicate photos, or large attachments. Use cloud storage options to free up space without losing access to important files. Proactive storage management ensures your iPhone remains fast and efficient. By addressing these common mistakes, you can significantly improve your iPhone's performance, security, and longevity. From optimizing your lock screen to managing app permissions and avoiding risky behaviors, these actionable tips empower you to take control of your device. Start implementing these changes today for a safer, more efficient iPhone experience. Unlock more potential in iPhone battery optimization by reading previous articles we have written. Source & Image Credit: AppleDsign Filed Under: Apple, Apple iPhone, Guides Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
Daily Mail
2 hours ago
- Daily Mail
The silent bloodbath that's tearing through the middle-class and rapidly flipping the US economy on its head
Elon Musk and hundreds of other tech mavens wrote an open letter two years ago about how AI was coming to 'automate away all the jobs' and upend society. It looks like we should have listened to them. Layoffs are sweeping America, nixing hundreds of thousands of jobs at Microsoft, Walmart, and other titans. The newly jobless speak of a 'bloodbath' on the scale of the pandemic. This time, it's not blue-collar and factory workers getting whacked — it's college graduates with white-collar jobs in tech, finance, law, and consulting. Entry-level jobs are vanishing the fastest — stoking fears of recession and a generation of disillusioned graduates left stranded with CVs no one wants. College grads are now much more likely to be unemployed than others, official data show. Chatbots have already taken over data entry and customer service jobs. Next-generation 'agentic' AI can solve problems, adapt, and work independently. These 'smartbots' are already spotting market trends, running logistics operations, writing legal contracts, and diagnosing patients. The markets have seen the future: AI investment funds are growing by as much as 60 percent a year. 'The AI layoffs have begun, and they're not stopping,' says tech entrepreneur Alex Finn. Luddites who don't embrace the tech 'will be completely irrelevant in the next five years,' he posted on X. Procter & Gamble, which makes diapers, laundry detergent, and other household items, this week said it would cut 7,000 jobs, or about 15 percent of non-manufacturing roles. Its two-year restructuring plan involves shedding managers who can be automated away. Microsoft last month announced a cull of 6,000 staff — about 3 percent of its workforce — targeting managerial flab, after a smaller round of performance-related cuts in January. LA-based tech entrepreneur Jason Shafton said the software giant's layoffs spotlight a trend 'redefining' the job market. 'If AI saves each person 10 percent of their time (and let's be real, it's probably more), what does that mean for a company of 200,000?' he wrote. Retail titan Walmart, America's biggest private employer, is slashing 1,500 tech, sales, and advertising jobs in a streamlining effort. Citigroup, cybersecurity firm CrowdStrike, Disney, online education firm Chegg, Amazon, and Warner Bros. Discovery have culled dozens or even hundreds of their workers in recent weeks. Musk himself led a federal sacking spree during his 130-day stint at the Department of Government Efficiency, which ended on May 30. Federal agencies lost some 135,000 to firings and voluntary resignation under his watch, and 150,000 more roles are set to be mothballed. Memes like this being shared on social media reveal how badly white-collar jobs have been hit Employers had already announced 220,000 job cuts by the end of February, the highest layoff rate seen since 2009. In announcing cuts, executives often talk about restructuring and tough economic headwinds. Many are spooked by US President Donald Trump's on-and-off tariffs, which sent stock markets into free-fall and prompted CEOs to second-guess their long-term plans. Others say something deeper is happening, as companies embrace the next-generation models of chatbots and AI. Robots and machines have for decades usurped factory workers. AI chatbots have more recently replaced routine, repetitive, data entry and customer service roles. A new and more sophisticated technology — called Agentic AI — now operates more independently: perceiving the environment, setting goals, making plans, and executing them. AI-powered software now writes reports, analyses spreadsheets, creates legal contracts, designs logos, and even drafts press releases, all in seconds. Banks are axing graduate recruitment schemes. Law firms are replacing paralegals with AI-driven tools. Even tech startups, the birthplace of innovation, are swapping junior developers for code-writing bots. Managers increasingly seek to become 'AI first' and test whether tasks can be done by AI before hiring a human. That's now company policy at Shopify. It's how fintech firm Klarna shrank its headcount by 40 percent, CEO Sebastian Siemiatkowski told CNBC last month. Experienced workers are encouraged to automate tasks and get more work done; recent graduates are struggling to get their foot in the door. From a distance, the job market looks relatively buoyant, with unemployment holding steady at 4.2 percent for the third consecutive month, the Labor Department reported on Friday. But it's unusually high — close to 6 percent — among recent graduates. The Federal Reserve Bank of New York recently said job prospects for these workers had 'deteriorated noticeably.' That spells trouble not just for young workers, but for the long-term health of businesses — and the economy. Economists warn of an AI-induced downturn, as millions lose jobs, spending plummets, and social unrest festers. It's been dubbed an industrial revolution for the modern era, but one that's measured in years, not decades. Dario Amodei, CEO of Anthropic, one of the world's most powerful AI firms, says we're at the start of a storm. AI could wipe out half of all entry-level white-collar jobs — and spike unemployment to 10-20 percent in the next one to five years, he told Axios. Lawmakers have their heads in the sand and must stop 'sugar-coating' the grim reality of the late 2020s, Amodei said. 'Most of them are unaware that this is about to happen,' he said. Sacked workers have taken to social media to vent their frustrations about the new tech crunch 'It sounds crazy, and people just don't believe it.' Young people who've been culled are taking to social media to vent their anger as the door to a middle-class lifestyle closes on them. Patrick Lyons calls it 'jarring and unexpected' how he lost his Austin-based program managing job in an 'emotionless business decision' by Microsoft. 'There's nothing the 6,000 of us could have done to prevent this,' he posted. A young woman coder, known by her TikTok handle dotisinfluencing, posts a daily video diary about the 'f*****g massacre' of layoffs at her tech company as 'AI is taking over,' she says. Her job search is going badly — one recruiter appeared more interested in taking her out for drinks than offering a paycheck, she said. 'I feel like s**t,' she added. Ben Wolfson, a young Meta software engineer, says entry-level software jobs dried up in 2023. 'Big tech doesn't want you, bro,' he says. Critics say universities are churning out graduates into a market that simply doesn't need them. A growing number of young professionals say they feel betrayed — promised opportunity, but handed a future of 'AI-enhanced' redundancy. Others are eyeing an opportunity for a payout to try something different. Donald King posted a recording of the meeting in which he was unceremoniously laid off from his data science job at consulting firm PwC. 'RIP my AI factory job,' he said. 'I built the thing that destroyed me.' He now posts from Porto, in Portugal — a popular spot for digital nomads — where he's founded a marketing startup. Industry insiders say it won't be long before another generation of AI arrives to automate new sectors. As AI improves, the difference between 'safe' and 'automatable' work gets blurrier by the day. Human workers are advised to stay one step ahead and build AI into their own jobs to increase productivity. Optimists point to such careers as radiology — where humans initially looked set to be outmoded by machines that could speedily read medical scans and pinpoint tumors. But the layoffs didn't happen. The technology has been adopted — but radiologists adapted, using AI to sharpen images and automate some tasks, and boost productivity. Some radiology units even expanded their increasingly efficient human workforce. Others say AI is a scapegoat for 2025's job cuts — that executives are downsizing for economic reasons, and blaming technology so as not to panic shareholders. But for those who have lost their jobs, the future looks bleak.
