Criminals are increasingly leveraging artificial intelligence, leading to a significant rise in fraud cases across the UK. AI enables the creation of sophisticated scams, including deepfakes, voice cloning, and highly convincing phishing emails, making it more difficult for individuals and businesses to detect fraudulent activity. The financial sector is a prime target, with AI being used to generate scam emails, fake websites, and malware.
In response, banks are adopting AI-powered fraud detection systems to combat these evolving threats. These systems analyse vast amounts of transaction data to identify suspicious activity and intercept fraudulent transactions in real-time. Visa, for example, has launched 'Visa Protect for A2A Payments', an AI-driven service that has shown the potential to save millions by identifying fraudulent transactions that bypass existing bank detection systems. Mastercard has also introduced AI solutions to predict and prevent scams, partnering with major UK banks.
UK regulators are increasing their oversight of technology providers, including those offering AI and automated fraud detection services, to ensure the stability and security of the banking sector. The Bank of England is also exploring the use of AI to identify complex financial crime patterns, although it acknowledges limitations and the need for robust data and explainable AI algorithms.
