Web Desk
Artificial intelligence is making it easier for scammers to dodge security checks and fake documents in record time.
Their tactics are growing more clever as AI tools become more advanced. So, what steps can banks and customers take to stay safe?
1. Deepfakes Fuel Fake Executive Scams
The biggest deepfake scam happened in 2024. Criminals tricked an employee at the UK-based firm Arup into sending $25 million.
They used AI to clone the faces and voices of top executives in a live video call.
Deepfakes use smart algorithms to recreate someone’s look and sound. With just one minute of voice and a photo, scammers can mimic anyone.
These fake voices and faces can be used in live calls or recorded clips, making the scam seem real.
2. AI Generates Fake Fraud Alerts
Hackers now use AI to send fake fraud warnings. Imagine a cybercriminal hacks a popular electronics store.
When real orders come in, AI calls customers, posing as their bank. It says the payment seems suspicious and asks for account info and security answers.
The urgency tricks people into handing over sensitive details. AI boosts this scam by using real data to sound more convincing, all in seconds.
3. Personalized Scams Lead to Account Takeovers
Instead of guessing passwords, criminals often use stolen credentials.
Once inside, they change the password, backup email, and verification methods, locking out the real user.
AI makes this worse. It can tailor scam messages to fit a victim’s habits—like when they shop or how they respond.
On busy shopping days like Black Friday, scams slip through unnoticed.
AI also sends thousands of personalized emails, each one sounding real. Even if most ignore them, a few victims can mean big payouts.
4. Fake Websites Made Easy by AI
AI tools help scammers create fake banking or investment sites fast and cheap.
These aren’t static pages—they respond to chats and calls. Victims may speak to an AI bot posing as a bank rep.
For instance, scammers cloned the Exante trading platform. Users thought they were investing but were sending money to a fake account.
According to Exante’s compliance head, AI was likely behind the quick, realistic site clone.
5. AI Defeats Liveness Checks
Liveness checks use real-time videos to verify identities. They’re supposed to catch imposters using photos or recordings.
But deepfakes now fool these systems too.
Criminals buy ready-made software that bypasses top liveness tools for just $2,000.
These tools are openly sold on platforms like Telegram, making fraud easier than ever.
6. Fake Identities Enable New Account Fraud
AI helps create synthetic identities—blending real and fake info. These include forged documents, selfies, and even financial histories.
Scammers build these identities over time. They behave like real users, apply for loans, use credit cards, and vanish with the money.
This process is automated, with AI acting like a human to avoid detection.
How Banks Can Respond to AI Fraud
1. Use Multifactor Authentication (MFA)
Biometric checks are no longer enough. Banks should use MFA—like codes sent to phones.
These are hard to steal, even with AI. Customers should be reminded never to share these codes.
2. Strengthen KYC Processes
Know-your-customer rules help verify user identity. AI-made profiles can seem real but have flaws.
Banks should test their systems with prompts to expose fakes.
3. Leverage Behavioral Analytics
AI can mimic shopping behavior, but not things like mouse movements or scroll speed.
Banks can track these subtle cues to spot unusual activity.
4. Run Deeper Risk Checks
Before opening new accounts, banks should verify the name, address, and SSN.
Many synthetic IDs are recent. Cross-checking social media and public data helps spot them. Putting holds on new accounts may prevent large losses.
Fighting AI Scams in Finance
AI has given fraudsters new tools. They don’t need deep tech knowledge—just access to the right AI apps.
But with smart security tools and extra caution, banks and customers can stay a step ahead.
