The double-edged sword of AI in the fight against payments fraud
Banks are ramping up AI investment, but much of it is aimed at countering fraudsters who are using the same technology to escalate scams and cyber attacks.
Heightened fraud and cybercrime threats are reshaping priorities in payments and AI, with funding increasingly diverted from innovation to defence and creating significant opportunity costs, according to new data.
A new report from payments intelligence service PYMNTS shows that heightened fraud concerns are disrupting innovation and the allocation of resources. Among firms experiencing broader uncertainty, 62% of payment heads report frequently delaying or cancelling innovation projects to address fraud risks.
“Fraud incidents have also forced companies to reallocate resources and adjust contracts,” PYMNTS noted. “These connections highlight the broad operational influence fraud-related uncertainty can have.”
Visa’s latest Biannual Fraud Report highlights an increase in the organisation, access to tools, and targets among threat actors. These actors are growing in scope and sophistication, aided by technological advances.
