US Treasury says that AI has made financial fraud easier than ever

The US Treasury department has said that AI is making it easier than ever for criminals to commit fraud against financial firms.

The warning echoes those of the Consumer Financial Protection Bureau, Federal Reserve, and Securities and Exchange Commission, who have also highlighted the risk AI poses to the financial industry.

AI tools have been a game changer, particularly for phishing, as it allows malicious actors to write convincing emails with proper grammar and spelling - even across languages.

Information sharing can combat fraud

Malicious actors are increasingly turning to AI to help perfect their attacks, and the ability to artificially generate voice and video has pushed impersonation to new heights. In the report submitted by the Treasury, Under Secretary for Domestic Finance, Nellie Liang, said, “Artificial intelligence is redefining cybersecurity and fraud in the financial services sector.”

Efforts to control the rise in fraud targeting financial firms have seen limited ...