As cybercriminals increasingly turn to artificial intelligence to execute complex fraud schemes, the financial sector finds itself in a high-stakes battle to protect its customers and assets according to a press release today. New data from the 2024 report Battle Against AI-Driven Identity Fraud by Signicat reveals that AI-driven fraud now constitutes 42.5% of all detected fraud attempts in the financial and payments sector, marking a critical turning point for cybersecurity in the financial industry. Furthermore, it is estimated that 29% of those attempts are considered successful.
This report sheds light on the rapidly escalating threat posed by AI-enhanced fraud tactics, which include the use of deepfakes, synthetic identities, and sophisticated phishing campaigns. These advanced techniques allow fraudsters to operate at an unprecedented scale and level of sophistication.
Current Trends in AI-Driven Fraud
- 42.5% of detected fraud involves AI: nearly half of all fraud attempts are now AI-driven, showcasing the growing sophistication and prevalence of these attacks.
- 80% Surge in Overall Fraud Attempts: the financial sector has experienced an 80% increase in fraud attempts over the last three years, driven in part by the adoption of AI by fraudsters.
- Only 22% of Firms Have Implemented AI Defences: despite the escalating risk, less than a quarter of financial institutions have taken action to deploy AI-driven fraud prevention measures, exposing a significant vulnerability.
