GENERATIVE AI
“Financial institutions and fintechs need to understand that misuse of Gen AI to perpetrate fraud is becoming an increasing risk ”
RICHARD BERKLEY HEAD OF DATA , ANALYTICS AND AI IN FINANCIAL SERVICES , PA CONSULTING
While Gen AI is completely changing the face of some industries , fintech has always been a data-centric sector in terms of the volume of transactions and the significant benefits that can be derived from spotting patterns in data to predict future trends .
It ’ s for this reason that Dom Couldwell , Head of Field Engineering , EMEA at DataStax , believes real impact in the sector is yet to materialise .
“ I think the influence will grow once organisations are more willing to ‘ take the training wheels off ’,” he says . “ It ’ s understandable that , in a highly regulated industry , organisations will be cautious about how much control they give away .”
Combatting fraud It goes almost without saying that fraudsters are already utilising the capabilities of Gen AI to target both companies and consumers with increasingly sophisticated scams , from fraudulent data generation to social engineering and phishing .
“ Our experts have observed several emerging economic crime risks within Gen AI ,” reveals Berkley .
“ Financial institutions and fintechs need to understand that the misuse of Gen AI to perpetrate fraud is becoming an increasing risk to both them and their customers .”
However , on the flip side , this gamechanging technology is providing organisations with more intelligent tools to assist them in detecting and combatting fraud .
128 January 2024