New Data Shows 70% of Fintechs Report Increased Fraud as Synthetic Identities Become Harder to Detect
IDology, a GBG Company, announced new data highlighting the growing problem of fraud fueled by generative artificial intelligence (Gen AI), putting pressure on fintechs seeking a way to protect against fraud without compromising the customer experience.
Gen AI has given criminals a path to work faster, scale attacks, and create more believable phishing scams and synthetic identities. Fraud is taking place on an industrial scale, and fintechs remain a prime target.
Businesses named Generative AI the biggest fraud trend over the next 3-5 years, sharing concerns that it will lead to more accurate synthetic identities, increased phishing/smishing, and more convincing fake/tampered IDs.
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-50% of fintechs are concerned Gen AI will create more convincing synthetic identities.
-25% of fintechs are concerned about the ability of Gen AI to create deep fakes.
-Fraud has increased or stayed the same for 70% of fintechs.
-45% of fintechs reported increased synthetic identity fraud in the last 12 months.
With Gen AI in the hands of fraudsters, fintechs are more vulnerable than ever. As Gen AI empowers fraudsters to create synthetic identities that are increasingly believable and difficult to detect, having an accurate and complete picture of customers is mission-critical for deterring fraud and improving the onboarding experience.
“These numbers indicate a need for action,” said James Bruni. “While Gen AI is being used to escalate fraud tactics, its ability to quickly scrutinize vast volumes of data can also be a boon for fintechs, allowing them to fast-track trusted identities and escalate those that are high-risk. The powerful combination of AI, human fraud expertise and cross-sector industry collaboration will help fintechs verify customers in real-time, authenticate their identities and monitor transactions across the enterprise and beyond to protect against difficult-to-detect types of fraud, such as synthetic identity fraud.”
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Source – prnewswire
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