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AI is Being Used in Cyber Attacks

How AI Helps in Financial Fraud

Banks and financial services are facing more risks because criminals are using advanced artificial intelligence (AI) technologies. These technologies can create fake audio and video clips that look and sound like real customers or company bosses, tricking security systems. There has been a big increase in these fake (“deepfake”) incidents, especially in the financial technology sector, with a 700% jump from last year.

Fake debt notification. Confused angry irritated focused curly lady talk with frauds in call quarrel

AI is Also Making Malware Smarter

Another worrying trend is the use of AI by criminals to make smarter malware. This malware can change its own code to keep from being caught by standard security systems. It can steal important information like usernames and passwords, which is a big threat to financial safety.

How Financial Institutions Are Fighting Back with AI

AI is Getting Better at Spotting Fraud

To deal with these AI threats, banks are also using AI to strengthen their defenses. Banks have been using AI for a while to spot fake transactions by looking for unusual patterns. Now, they’re using even more sophisticated AI to keep up with criminals. For example, Mastercard’s new AI system can check a trillion data points to confirm transactions, which really helps in spotting fraud.

AI Can Watch for Dangers in Real Time

AI is now also used to look at security risks as they happen. For instance, FBD Insurance uses AI software to keep an eye on up to 15,000 IT events every second. This helps them react quickly to any security problems. This move to real-time monitoring is a big improvement over older systems that only noticed threats after they happened.

Challenges of Using AI in Cybersecurity

There Are Risks with Using AI for Security

Although AI can be very helpful, it also comes with new problems. Criminals might try to mess with AI systems by giving them wrong data, which can mess up the AI models and lead to wrong decisions about threats. Banks need to be careful and make sure their AI systems are strong and protected from these tricks.

Humans Still Need to Watch Over AI

Despite all the progress with AI, we still need human cybersecurity experts. AI systems, especially those that create things like deepfakes, need people to watch over them and fix any mistakes. Human experts are very important for handling the risks that come with using AI in cybersecurity.

Learn why it’s important to use AI to fight against AI-driven threats in finance. Get the latest updates on AI in cybersecurity, the ongoing challenges of using AI for security, and why human experts are still essential.

Man does financial theft with mockup PC

Sure, here are three frequently asked questions (FAQs) that could complement the article on AI’s role in cybersecurity for financial services:

FAQ 1: What is a deepfake?

Answer: A deepfake is a synthetic media in which a person in an existing image or video is replaced with someone else’s likeness using artificial intelligence technologies. These can include audio and video clips that look and sound very realistic. In the context of financial fraud, deepfakes might mimic the voice or appearance of a trusted individual to trick security systems or people into granting access to sensitive information.

FAQ 2: How does AI detect fraudulent transactions?

Answer: AI detects fraudulent transactions by analyzing patterns and anomalies in data. Financial institutions use AI systems to review vast amounts of transaction data in real time. The AI is trained to recognize what normal transactions look like and can flag transactions that deviate from these patterns. Advanced AI systems, like the one used by Mastercard, can analyze trillions of data points to accurately identify potentially fraudulent activities.

FAQ 3: Why is human oversight necessary in AI-powered cybersecurity?

Answer: Human oversight is crucial because AI systems can sometimes make mistakes or “hallucinate” false outputs. Also, AI models can be tampered with or manipulated by feeding them incorrect data, which can lead to faulty decisions. Human cybersecurity experts are needed to supervise AI operations, verify its findings, and intervene when necessary to correct errors and refine the system’s responses. This combination of AI and human expertise ensures more robust defenses against cyber threats.

Sources Financial Times