Regulators, law enforcers, and the financial industry are getting concerned with the advancement of artificial intelligence (AI), citing worries at how it’s being used to proliferate cybercrime. It also coincides with a report suggesting the cost of the scam to reach $8 trillion in 2023 and $10 trillion by 2025.

Cybercriminals are even becoming more creative with their nefarious scheme, now resorting to using data from children for fraud. Some unsuspecting victims fall into the trap when used with AI-generated children’s voices and are paired with photos taken from social media.

The issue of financial fraud globally predates the use of AI. However, technological innovations through the use of AI certainly made cybercrime more ubiquitous and advanced.

In the United States alone, there is an estimated consumer loss of $8.8 billion due to fraud, an uptick of 44 percent from 2021. This staggering record comes amid efforts to bolster the safeguard and prevention measures in investments.

Major banks such as the Deutsche Bank and Wells Fargo fear the threats that come with the impending fraud boom in the financial industry. The concern also party stems from the potential loss of customer trust, especially among the affected.

Leading Fraud Manager for the Commonwealth Bank of Australia James Roberts said that an “arm’s race” is underway.

In a bid to combat the fraud, efforts were put into educating the consumers about the risks involved as well as the importance of investing in defensive technology. Even the banks are putting up stronger defenses, such as having a better ability to detect dubious transactions, analyze irregular mouse activities, and discern synthetic images.

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