BioCatch Releases Inaugural Annual Report on AI's Impact on Digital Fraud and Financial Crime
Published today, the report – from the global leader in digital-fraud detection and financial-crime prevention powered by behavioral biometric intelligence – depicts a troubling and burgeoning trend in which criminals with minimal technical expertise or financial crime skillset are using this new technology to improve the quality, reach, and success of their digital-banking scams and financial crime schemes.
"Artificial intelligence can supercharge every scam on the planet," BioCatch Director of Global Fraud Intelligence Tom Peacock said, "flawlessly localizing the language, slang, and proper nouns used and personalizing for every individual victim the scam type, images, audio, and/or video involved. AI gives us scams without borders and will require financial institutions to adopt new strategies and technologies to protect their customers."
A staggering 91% of respondents report their organization is now rethinking the use of voice-verification for big customers due to AI's voice-cloning abilities. More than 70% of those surveyed say their company identified the use of synthetic identities while onboarding new clients last year. The Federal Reserve believes traditional fraud models fail to flag as many as 95% of synthetic identities used to apply for new accounts. It regards synthetic identity fraud as the fastest-growing type of financial crime in the U.S., costing companies billions of dollars every year.
"We can no longer trust our eyes and ears to verify digital identities," BioCatch CMO Jonathan Daley said. "The AI era requires new senses for authentication. Our customers have proven behavioral intent signals are those new senses, allowing financial institutions to sniff out deepfakes and voice-clones in real time to keep people's hard-earned money safe."
Other Key Survey Findings:
"Today's fraudsters are organized and savvy," BioCatch CEO Gadi Mazor said. "They collaborate and share information instantly. Fraud fighters – including technology-solution providers like us, along with banks, regulators, and law enforcement – must do the same if we expect to reverse the growing fraud numbers across the globe. We believe our recent partnership with The Knoble will advance this discussion and remove the perceived barriers to better, more meaningful collaboration and fraud-prevention."
Click here to access BioCatch's complete 2024 AI, Fraud, and Financial Crime Survey and discover how the financial services industry plans to safeguard customers with and against a rapidly expanding and improving set of AI tools.
About BioCatch:
BioCatch stands at the forefront of digital fraud detection, pioneering behavioral biometric intelligence grounded in advanced cognitive science and machine learning. BioCatch analyzes thousands of user interactions to support a digital banking environment where identity, trust, and ease coexist. Today, more than 30 of the world's largest 100 banks and more than 180 total financial institutions rely on BioCatch Connect™ to combat fraud, facilitate digital transformation, and grow customer relationships. BioCatch's Client Innovation Board, an industry-led initiative featuring American Express, Barclays, Citi Ventures, HSBC, and National Australia Bank, collaborates to pioneer creative and innovative ways to leverage customer relationships for fraud prevention. With more than a decade of data analysis, 90 registered patents, and unmatched expertise, BioCatch continues to lead innovation to address future challenges. For more information, please visit
www.biocatch.com.
Media contact:
Jay Jones
[email protected]
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