Banks rely on AI as digital transactions grow, and methodology of frauds evolves
Hindustan TimesIndia’s digital transactions continue to see rapid growth, and that translates to big volumes. On April 24, the Reserve Bank of India barred Kotak Bank from issuing new credit cards for now, due to “the absence of a robust IT infrastructure and IT Risk Management framework.” It draws on a mix of factors, including reliability of the bank’s infrastructure alongside a resilience to the growing needs of digital payments. To be able to detect all attempts at fraud isn’t easy for any digital payments user, something Joy Sekhri, who is Vice President for Cyber & Intelligence Solutions for South Asia at Mastercard, illustrates. Card network Visa’s latest report, “Fraudulese: The Language of Fraud” notes nearly 75% of consumers are likely to miss red flags about malicious links or shady payment platforms, including suspicious messages, wonky webpage formatting or missing contact info. Yet, as research firm Accenture in its latest report titled “The age of AI: Banking’s new reality” warns, “With insufficient controls, generative AI could facilitate unauthorized access to and use of confidential information which is used to train LLMs.” That’ll mean increased vulnerabilities and data leakage.