There is growing fraud online in which scammers manufacture other identities to dupe financial institutions or their customers out of money — and the crimes are only expected to grow more frequent with the increasing prevalence of artificial intelligence, experts say.
A new survey of 500 fraud and risk professionals, first reviewed by ABC News, shows widespread concern in the financial industry about the growing scale of these fake online customers and whether security and identity detection technology at banks and loan servicers can keep up.
According to industry experts, financial institutions responsible for servicing loans, issuing credit cards or running credit checks have long been forced to contend with criminals who steal other people’s personal information to create fake personae for their financial gain.
This is called « synthetic » fraud and it has taken on a new dimension with the spread of generative AI technology, said Ari Jacoby, whose AI security firm Deduce commissioned the survey, which was conducted by Wakefield Research.
Generative AI is the use of artificial intelligence tools capable of producing content including text, images, audio, video and data with simple prompts.
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