UK Financial Regulator Urges Banks to Tackle AI-Based Fraud

From infosecurity-magazine.com

The UK’s financial services regulator has warned banks that it will be watching closely what steps they put in place to mitigate the growing risk of AI-powered fraud.

Financial Conduct Authority (FCA) CEO, Nikhil Rathi, said in a speech delivered at the offices of The Economist this week, “We will remain super vigilant on how firms mitigate cyber-risks and fraud given the likelihood that these will rise.”

He cited the case of finance campaigner Martin Lewis, who last week warned his followers on social media about a viral deepfake video generated by AI technology in which a likeness of him was used to promote an investment fraud scheme.

“There are other risks too, involving cyber fraud, cyber-attacks and identity fraud increasing in scale and sophistication and effectiveness,” Rathi continued.

“This means that as AI is further adopted, the investment in fraud prevention and operational and cyber resilience will have to accelerate at the same time. We will take a robust line on this – full support for beneficial innovation alongside proportionate protections.”

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