The promise of emerging technologies like artificial intelligence (AI) and machine learning to revolutionise fraud detection and fraud prevention across sectors has received a lot of attention.
However, the full effect these new technologies will have on discouraging or averting fraudulent activities in the banking and financial services sector is still unknown, according to UK Finance’s Katy Worobec, managing director, economic crime, and Dianne Doodnath, principal, economic crime – remote payment channels.
In fact, Worobec claimed that regardless of the sophisticated technology being employed, the problem would persist as long as con artists can persuade victims to give them access to their personal data.
In an interview Worobec said, “Although new technologies are useful, consumers still need to be alert and protect themselves against fraud.” He added that, “while new technologies are helpful, customers still need to be vigilant and protect themselves against fraud.”
Doodnath said that some of the drawbacks of these cutting-edge technology are also highlighted by remarks made by members of UK Finance, a trade organisation for the U.K. banking and financial services sector. For instance, even while AI can identify those who are more likely to fall victim to fraud, it is unable to stop people from taking part in activities that put them at risk of attack.
Doodnath said that there are difficulties with the emergence of the metaverse and immersive consumer experiences, noting that it is not always clear what is safe to do in the real world and what is not in a virtual area where users tend to let their guard down.
Doodnath asserted that “We’ll see a lot more challenges before we see advantages” because of the lack of understanding of emerging technology and how simple it is “to spoof or manipulate” them.