Emerging technologies like artificial intelligence (AI) and machine learning have drawn a lot of interest for their potential to revolutionize fraud prevention and detection across industries.
According to UK Finance’s Katy Worobec, managing director, of economic crime, and Dianne Doodnath, principal, of economic crime – remote payment channels, the full impact these new technologies will have on discouraging or averting fraudulent activities in the banking and financial services sector is still unknown.
In fact, Worobec asserted that no matter how advanced the technology used, the issue would still exist as long as con artists could convince victims to grant them access to their personal data.
Worobec stated in an interview that “consumers still need to be attentive and defend themselves against fraud, even when new technologies are beneficial.” While new technologies are beneficial, the client still has to be watchful and take precautions to avoid fraud, he continued.
Doodnath claimed that statements made by members of UK Finance, a trade group for the British banking and financial services industry, also highlighted some of the disadvantages of this cutting-edge technology. AI, for example, may identify those who are more likely to become victims of fraud, but it cannot prevent people from engaging in behaviors that put them in danger of attack.
Doodnath noted that it is often unclear what is safe to do in the real world and what is not in a virtual environment where users tend to let their guard down. She also noted that there are challenges with the rise of the metaverse and immersive consumer experiences.
Doodnath said that “We’ll see a lot more obstacles before we see advantages” because of the lack of awareness of developing technologies and how simple it is “to spoof or manipulate” them.
