Synthetic identity fraud now costs banks $6 billion a 12 months, making it the fastest-growing financial crime within the US Criminals are able to take advantage of personal data breaches to fabricate “Frankenstein IDs.” Low-cost credential-stuffing software might be used to check 1000’s of stolen credentials across multiple platforms in a matter of minutes. And text-to-speech tools powered by AI can bypass voice authentication systems with ease.
“Technology is each catalyzing and transformative,” says John Pitts, head of industry relations and digital trust at Plaid. “Catalyzing in that it has accelerated and made more intense longstanding kinds of fraud. And transformative in that it has created windows for brand new, scaled-up kinds of fraud.”
Fraudsters can use AI tools to multiply over and over over the variety of attack vectors—the entry points or pathways that attackers can use to infiltrate a network or system. Prematurely-fee scams, for example, where fraudsters pose as benefactors gifting large sums in exchange for an upfront fee, scammers can use AI to discover victims at a far greater rate and at a much lower cost than ever before. They will then use AI tools to perform tens of 1000’s, if not hundreds of thousands, of simultaneous digital conversations.
