August 28, 2023
Fraud is one of the most critical issues financial services companies are facing right now. According to Alloy’s State of Fraud Benchmark Report, 91% of banks and fintechs reported an increase in fraud year-over-year in 2022, costing 70% of respondents over half a million dollars in losses last year.
There are numerous reasons contributing to the widespread rise in fraud. One of the most significant of which is that fraudsters have become more organized, tech-savvy, and scrappy than ever before.
Their most notable new (not-so) secret weapon is artificial intelligence (AI), which they leverage to execute more sophisticated fraud attacks. Meanwhile, banks and fintechs are also racing to figure out how they can use AI to fight back.
If you’re like us and you were equally enthralled/terrified by the 2023 horror film M3GAN, which tells the story of an AI-powered children’s doll turned evil killer, you might be a little (a lot) nervous about how AI could potentially impact life as we know it. We’ll save the existential dread for another time, but instead, take a look at how AI might help and hurt the financial services industry.
Asher Furnad is a GTM Lead at Vouched and excels in the field of financial services, leveraging experiences from his tenure at NASDAQ and Gartner to help drive Vouched's market positioning and growth.