A recent report from Signicat, a leading provider of digital identity and fraud prevention solutions in Europe, has revealed that artificial intelligence (AI) is playing a significant role in fraud attempts against financial institutions. In fact, over a third of these attempts involve the use of AI, and one in fifteen attempts now utilize deepfakes. The report, titled “The Battle against AI-driven Identity Fraud,” also found that 42.5% of detected fraud attempts involve AI, and nearly 30% of these attempts are successful.
What’s particularly striking is that one in nine respondents estimate that AI is used in as much as 70% of fraud attempts within their organizations. Additionally, 38% of revenue loss due to fraud is attributed to AI-driven attacks. Surprisingly, the most common type of fraud for B2B organizations is account takeover, which is typically associated with consumer issues.
Despite the increasing threat posed by AI-driven fraud, approximately three-quarters of organizations face obstacles in detecting and combating it. These obstacles include a lack of expertise, time, and budget. To address this challenge, the report calls for a robust strategy to combat AI-driven identity fraud. It emphasizes the need for layered defenses, including the use of AI-enabled fraud prevention tools.
