Is the FCA underestimating the AI fraud threat?

There is a lot of optimism around what AI could do for financial services. It can make processes faster, spot suspicious activity earlier and help banks deal with fraud at a scale that would be impossible for human teams alone.

All of that is true. But it risks obscuring a more immediate problem. The same technology is improving the economics of fraud, and criminals do not have the same constraints as the organizations trying to stop them.

Technical Director UK & Ireland at Trend Micro.

They do not have lengthy procurement cycles, legacy technology to integrate or regulatory processes to work through. They can experiment, fail and try again. That creates a growing gap between the speed at which AI-enabled fraud is developing and the speed at which financial institutions can adapt their defenses.

The question for the FCA, and for the industry more broadly, is whether we are paying...

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