How AI is redefining security in the era of scams

It’s hard to miss the headlines about increasingly sophisticated scams targeting individuals and businesses alike. And a key driver behind this surge isn’t just criminal ingenuity, it’s the growing use of AI to refine and scale fraudulent schemes.

 

The consequences are concerning, with the number of deepfakes circulating online doubling every six months. Research published by Harvard Business Review found that AI-generated phishing content is just as effective as messages crafted by human experts, while slashing costs by more than 95 per cent. Meanwhile, more than a quarter of UK adults suspect they have been targeted by an AI-powered voice-cloning scam.

 

The cost of neglecting fraud prevention

 

For banks, this is a growing concern. Scams are notoriously difficult to detect, as victims often authorise payments themselves using their usual devices and locations. With AI, particularly large language models, providing fraudsters with automation, scale and more convincing deception techniques, exploiting human vulnerabilities through scams and social engineering has never been easier.

 

The consequences can be severe – both for banks, which risk losing trust, reputation and ultimately customers, and for victims, who often face not just significant financial losses but also lasting emotional and psychological distress.

 

As fraud grows more sophisticated, banks can no longer see prevention as just a compliance checkbox. It has become essential not only for maintaining a secure and trusted financial environment but also for gaining a competitive edge. To keep pace, many are realising that traditional methods are no longer enough. Fighting fire with fire, they are turning to AI to strengthen their fraud defences. Around 70 per cent of financial institutions have already adopted AI-driven solutions, and for those falling behind, the cost of inaction could be steep.

 

Implementing AI can be straightforward

 

For banks hesitant about AI adoption, concerns over implementation complexity and cost are often the biggest barriers. While some invest in in-house development, others find that partnering with specialised providers offers a more efficient path to advanced fraud prevention. The key is choosing a solution that not only enhances security but also integrates seamlessly into existing infrastructure.

 

One approach proving particularly effective is behavioural intelligence – AI-powered fraud detection that analyses subtle digital cues to identify risks traditional systems miss. This technique has shown strong results in tackling sophisticated scams such as authorised push payment (APP) fraud, where legitimate customers are manipulated into making transfers. Solutions such as ThreatMark’s Behavioral Intelligence Platform leverage this approach to provide cost-efficient, cloud-ready fraud defences, helping banks stay ahead of emerging threats.

 

The platform takes a holistic approach to fraud detection, analysing behavioural patterns (such as keystroke dynamics and navigation paths), device activity (for example, ongoing phone calls, active screen sharing, financial malware) and transactions (unusual amounts, new or high-risk payees). By continuously assessing individualised interaction patterns throughout the user journey, it can quickly detect deviations from established norms, flagging potential fraud risks in real time.

 

From defence to disruption

 

Fraud prevention is much like a game of chess, says Chen Zamir, Founder of Native[Risk], on Behind Enemy Lines – a podcast exploring fraud-fighting strategies with industry experts. The analogy underscores that while strengthening fraud defences is crucial, truly defeating fraud requires thinking ahead and actively reducing threats.

 

This is where some AI-powered fraud detection systems fall short, but ThreatMark takes a different approach. Its Behavioral Intelligence Platform gathers intelligence on attackers’ infrastructure, devices, tools, locations, payment methods and attack vendors – ultimately enabling the disruption of fraud networks and criminal operations.

 

Only by countering fraud at scale, rather than just individual attacks, can financial institutions meaningfully reduce fraud losses and protect their entire customer base, not just individual users. In an era where scams are increasingly powered by AI, taking action is no longer optional.

 

However, checkmating fraudsters requires a strategic approach – one that leverages AI-driven intelligence alongside deep fraud expertise. ThreatMark’s fraud-fighting professionals help organisations navigate this process, serving as invaluable partners in transforming fraud prevention into proactive fraud disruption.

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Want to explore how AI-powered fraud prevention fits into your strategy? Download ThreatMark’s latest whitepaper on AI and fraud to discover how leading banks are using intelligence-driven defences to stay ahead