The widespread usage of artificial intelligence (AI) in committing fraud is being countered by financial institutions’ growing reliance on AI and advanced analytics for fraud detection, mitigation and prevention. Increasingly, executives are turning to machine-learning models and behavioral biometrics for real-time detection of fraud. The tough balancing act they face: How to balance speed, accuracy and customer experience with sophisticated guardrails to prevent fraud before it happens. The roundtable discussion will focus on the usage of AI to commit and prevent fraud, strategies being employed to identify fraud patterns and stop them before they occur, and how to model governance, transparency and regulatory expectations for the usage of AI in fraud prevention.

The financial industry is facing a fraud threat landscape that is growing in frequency and sophistication, with a surge in real-time payments fraud such as authorized push payments, account takeover attacks, and AI-fueled synthetic identity fraud and deepfakes for social engineering and phishing. While the rise in fraud types and frequency relies in great part on more sophisticated technology, those committing the fraud also exploit human-factor vulnerabilities. The roundtable discussion will examine the increasing fraud risks in instant payment systems (FedNow, RTP) and P2P platforms, card-not-present fraud in e-commerce and mobile wallets, business email compromise (BEC) and social engineering that targets corporate clients, and emerging fraud schemes within embedded finance and buy now, pay later.