Insight

What do banks and fintechs need to do to get fraud-fighting systems up to scratch? Alex Kelly, Vice President of Product at Tribe Payments, outlines whether AI is ready to fight fraud.

Artificial Intelligence (AI) is no longer science fiction. It’s now reality – and depending on who you talk to, AI is either the biggest threat to humanity, or the next evolutionary step towards limitless opportunity. It’s radically transforming our lives as individuals and our societies in ways that were unthinkable just a few years ago.

The digital divide in cyber security is human. When we fail to acknowledge the reality of human behaviour, how people typically work, day to day, we risk undermining the progress of cybersecurity technologies and email is often the achilleas’ heel, according to Dave Adamson, CTO at Espria. According to the Mimecast state of email security 2023 report, phishing attempts soared by over 60% YoY.

Whilst collaboration tools like Teams and Slack are commonplace, they’re yet to universally replace email, which remains the primary way most businesses communicate internally and externally. Email is also a vulnerable target for cybercriminals due to its accessibility and the potential for human error. Consequently, email is an effective tool used by cybercriminals to spread spam, attempt phishing attacks and send attachments and links that automatically install malware on a user’s device.

The FCA has launched a review on the treatment of domestic Politically Exposed Persons (PEPs), setting out issues that it will consider as part of their inquiry into banks and financial institutions to inform whether necessary action by the regulator is needed.

The FCA plans to review financial services firms, looking into the arrangements and processes they have in place when dealing with PEPs based in the UK, requiring the institutions under scrutiny to provide necessary information that is asked of them to prove compliance.