AUSTRAC has found potentially hundreds of millions of dollars in fraudulent loans.
Bank fraud in Australia is becoming harder to detect as criminals use artificial intelligence (AI) to forge identities and documents, whilst weaknesses in lending controls and legal protections leave banks and customers exposed, analysts said.
Konstantin Poptodorov, director of fraud and identity at LexisNexis Risk Solutions, Inc., said there was little specific evidence of AI-driven bank fraud two years ago, but the technology is now involved in almost every type of fraud his team sees.
“That ranges from fake identities, documentation, and deepfake videos,” he told Asian Banking & Finance.
Poptodorov also warned that criminals are recruiting third parties to facilitate fraud, including people who sell their identities for fraudulent purposes.
The Australian Transaction Reports and Analysis Centre (AUSTRAC)…
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