“ Banks are continuing to grapple with managing the volume of APP scams , and the level of sophistication is increasing ”
IGNATIUS ADJEI PARTNER , KPMG
Fraudsters ’ growing repertoire So , from a fraud perspective , what exactly are financial services firms and their customers having to contend with in today ’ s ever-changing business landscape ?
Significant losses continue to be seen across payment card fraud and authorised push payment ( APP ) fraud , where customers are tricked into transferring money to an account controlled by a fraudster .
“ Banks are continuing to grapple with managing the volume of these scams , and the level of sophistication is increasing ,” says Ignatius Adjei , Partner at KPMG ’ s Fraud and Financial Crime Practice .
“ For example , in card cracking schemes , scammers use social media to offer other users a strategy to make money that seems to be above board , but is actually a way for the criminal to steal card details .”
In fact , “ good old-fashioned phishing ”, as Cease puts it , remains responsible for a large proportion of cyber attacks in the finance industry .
The widespread expectation is that case numbers and impact will continue to grow thanks to AI , which is set to vastly outperform human phishing in the nottoo-distant future , if not already , as Gen AI systems improve .
Elsewhere , Adjei is seeing Gen AI used for various kinds of forgery , including creating false bank accounts , invoices and bills . This is especially prevalent in the US , where billions of dollars have been lost to identity-related synthetic fraud .
90 February 2024