Machines are gradually taking on activities of human customers such as research, negotiations and user reviews. The rise of the AI customers marks a shift from machines as passive tools to active participants in economic transactions, said Donald Scheibenreif, vice president and analyst at Gartner.
First-party fraud hits banks from many different places - credit card fraud claims, bust-out schemes, lending fraud and synthetic identity fraud. The diversity of scams poses major challenges in spotting fraudulent activity, said Frank McKenna, chief strategist and co-founder of Point Predictive.
First-party fraud is largely invisible. It requires financial institutions to overhaul their traditional fraud detection approaches. Unlike more commonly recognized forms of fraud, first-party fraud involves account holders acting deceitfully, which makes detection and prevention more complex.
Researchers have created a zero-click, self-spreading worm that can steal personal data through applications that use chatbots powered by generative artificial intelligence. Dubbed Morris II, the malware uses a prompt injection attack vector to trick AI-powered email assistant apps.
About 20% of new companies created in the U.K. every day - or some 800 firms - are scams. These fake businesses are being created from an ocean of stolen high-quality data related to real people, making it hard to spot the fraudsters, said Graham Barrow, director of "The Dark Money Files" podcast.
First-party fraudsters have shifted their focus from credit card fraud to deposit scams. In this evolving threat environment, financial institutions face new challenges from the increased use of synthetic identities and the difficulties in classifying first-party fraud, said BioCatch's Seth Ruden.
Unlike identity theft, first-party fraud is harder to spot when a consumer opens an account. To guard against this growing blind spot, banks need to invest in transaction-monitoring tools and take a more holistic approach to fraud, said Ian Mitchell, co-founder of Mission Omega.
A watchdog report reveals how Heartland Tri-State Bank CEO Shan Hanes allegedly defrauded a local church and investment club in Kansas out of $47.1 million through a "pig-butchering" cryptocurrency scam that ultimately caused the bank to fail in 2023.
Bank of America is notifying more than 57,000 customers that their information, including Social Security numbers, was potentially compromised in a hacking incident last November at Atlanta, Georgia-based insurance software firm InfoSys McCamish. BoA says none of its systems were affected.
Synthetic IDs remain a problem not because of a lack of data but because of failure to identify the right data and establish correlations, said Steve Lenderman, co-chair of the Industry Working Groups for the International Association of Financial Crimes Investigators.
Entrust, a pioneer payment, identity and data security software and services provider, is in talks to acquire Onfido, a pioneer in cloud-based, AI-powered identity verification technology, for a reported $400 million. The combined solution will help customers fight identity fraud.
The novel variant of the banking Trojan Mispadu is targeting Latin American countries, especially Mexico, by exploiting a flaw in Windows SmartScreen. In this latest distribution method, the attackers send spam emails that deliver deceptive URL files that circumvent the SmartScreen banner warning.
Fraudsters used deepfake technology to trick an employee at a Hong Kong-based multinational company to transfer $25.57 million to their bank accounts. Hong Kong Police said Sunday that the fraudsters had created deepfake likenesses of top company executives in a video conference to fool the worker.
Financial giant EquiLend Holdings said it's brought back online multiple systems, including its NGT platform that handles securities lending transactions worth $2.4 trillion every month, following an outage triggered by ransomware-wielding attackers gaining unauthorized access to its systems.
Bloomberg, JPMC, European Central Bank, Morgan Stanley, Nasdaq, HDFC ERGO and Commonwealth Bank Australia are harnessing generative AI to enhance productivity and customer experience. Generative AI has the potential to reshape job roles, redefine customer interactions and create new business models.
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