AI

Report shows increasing number of fraud attempts use AI, deepfakes

Would-be fraudsters are increasingly leveraging AI-powered tools, including deepfakes, with more than one third of fraud attempts aimed at financial institutions using AI.

May 30, 2024

Would-be fraudsters are increasingly leveraging AI-powered tools, including deepfakes, with more than one third of fraud attempts aimed at financial institutions using AI.

It's all part of a changing European cybersecurity landscape showcased in "The Battle Against AI-driven Identity Fraud," a report from Signicat, a digital ID and fraud prevention firm, created in partnership with independent consultancy Consult Hyperion, according to a press release on the findings.

The study consulted more than one thousand fraud decision-makers in Belgium, Germany, the Netherlands, Norway, Spain, Sweden and the UK.

"Fraud has always been one of our customers' biggest concerns, and AI-driven fraud is now becoming a new threat to them. It now represents the same amount of successful attempts as general fraud, and it is more successful if we look at revenue loss," Asger Hattel, CEO at Signicat, said in the release.

"AI is only going to get more sophisticated from now on. While our research shows that fraud prevention decision-makers understand the threat, they need the expertise and resources necessary to prevent it from becoming a major threat. A key part of this will be the use of layered AI-enabled fraud prevention tools, to combat these threats with the best technology offers."

Highlights of the report's findings include:

• Deepfake usage is on the rise.
• A third of AI-powered fraud attempts succeed.
• Account takeover in B2B is the leading fraud type for B2B organizations.
• Decision-makers are often unclear on how to respond to AI-powered fraud technology.
• More than 75% of businesses have teams assigned to the problem, but less than 25% have begun implementing responses.

The full report has been made available here.