Last week, we sat in on the “Friend or Foe: Whose Side is AI on in the Digital Scam Wars?” session at SXSW, courtesy of Australian Payments Plus (AP+). It was an insightful discussion—AI’s dual role as both protector and perpetrator of fraud was front and centre. The big question: how can businesses harness AI’s power to defend against threats while staying ahead of the bad actors?
For those who couldn’t make it, here’s a quick recap of the key trends that every CFO should be paying attention to.
“Fraud typically happens without the victim’s knowledge, while scams involve the victim unknowingly authorising fraudulent transactions. Scams are becoming more effective, as criminals exploit trust to bypass fraud prevention systems.”
— Shameela Gonzalez, Financial Services and Insurance Lead at CyberCX
The takeaway: Criminals are getting craftier, and scams are evolving fast. Think business email compromise (BEC) and social engineering tactics that trick victims into giving up financial details. These aren’t your run-of-the-mill fraud attempts—they’re personalised, and they’re working. The rise in sophisticated scams highlights the growing need for real-time verification solutions to help businesses prevent these fraudulent transactions before they slip through the cracks.
“AI helps us manage risk by analysing payment data in real-time, detecting anomalies, and preventing fraudulent transactions before they’re completed. In highly regulated industries, this capability is essential for ensuring compliance and security.”
— May Lam, Chief Information Officer at AP+
The takeaway: AI’s value is in its speed. It’s not just about detecting fraud, it’s about detecting it before it happens. The beauty of AI? It spots patterns in payment data that humans might miss, making it invaluable for industries with tight regulations. With AI tools evolving rapidly, finance leaders need to act now—integrating AI-driven fraud detection to get ahead of the increasingly automated fraud landscape.
“The financial services industry is one of the most highly regulated sectors, with over 45% of investments going into risk management and compliance. AI helps generate reports, ensure compliance, and strengthen governance.”
— May Lam, Chief Information Officer at AP+
The takeaway: AI isn’t just about catching fraudsters—it’s about making sure your company stays compliant, too. As regulations tighten, staying on top of vendor data accuracy and compliance is critical. AI helps streamline these processes, keeping your data clean and ensuring you’re meeting regulatory demands without the headache.
“AI can also provide hyper-personalised financial management, alerting individuals to anomalies in their payments or cash flow that may indicate a scam. This improves efficiency by helping businesses better manage their finances while flagging potential risks in real-time.”
— May Lam, Chief Information Officer at AP+
The takeaway: AI isn’t just about fraud. It offers personalised financial insights that make managing your business’s cash flow more efficient. AI helps spot oddities in your payment patterns, flagging risks before they become costly problems. It’s smart, it’s fast, and it’s indispensable.
“We’re seeing more collaboration between financial institutions and service providers, using AI to share data and prevent fraud in real-time. This collaboration is essential for staying ahead of increasingly sophisticated scams.”
— Phillip Finnegan, General Manager – APAC at Featurespace
The takeaway: Fighting fraud isn’t a solo act anymore. Financial institutions, service providers, and tech platforms are teaming up, and AI is making it easier to share critical data in real-time. The faster everyone works together, the quicker they can respond to sophisticated scam tactics and keep their businesses—and their customers—safe.
“AI is transforming the way we approach fraud prevention by analysing massive amounts of transaction data, identifying risks in real-time, and offering personalised insights that enhance financial security across the board.”
— Simon Johnston, Head of GTM Data & AI, Australia & New Zealand at Amazon AWS
The takeaway: AI is a double-edged sword. While it helps us fight fraud, it’s also driving the sophistication of fraud attempts—like invoice scams that alter payment details on a large scale. Finance leaders need to be proactive, adopting AI tools that give them real-time alerts and protection against these increasingly complex threats.
All the news, tactics and scams for finance leaders to know for November / December 2024.
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