Integrating artificial intelligence (AI) presents promising opportunities and daunting challenges in today's ever-evolving world of financial transactions and digital advancements. As we harness the power of AI to enhance operational efficiency, detect patterns, and optimize decision-making processes, financial institutions must remain vigilant. Nefarious actors can also use AI for illicit purposes, so it is essential that your fraud and AML/CFT program guard against AI fraud.
An example of a rising AI fraud scheme is using voice-to-text technology, such as Microsoft’s new Vall-E Text-to-Speech System. This technology can convert written words into speech that sounds like a recorded person using only three seconds of a voice recording. AI fraud perpetrators can purchase someone’s personal information (name, address, phone number, and social security number) on the dark web, then call the unsuspecting victim, perhaps pretending to be a salesperson to get the victim talking.