Paymentology Official Warns Against AI Fraud

Stephen Bowe, Chief Product Officer at Paymentology, explained how criminals use artificial intelligence for sophisticated fraud, synthetic digital identities, and social engineering.

There are instances where banks cannot prevent money from going to criminals even when they verify the right person. Stephen Bowe, Chief Product Officer at Paymentology, stated that no matter how advanced authentication protocols are, the vulnerability grows if the legitimate customer initiates the payment themselves. While additional measures such as biometrics, chip and PIN cards make using stolen credentials more difficult, fraudsters choose to persuade legitimate customers into approving payments.

Artificial intelligence plays a role in creating synthetic digital identities gathered from multiple sources that remain undetected for long periods. Stating that remote customer onboarding makes identification difficult, Bowe noted that in social engineering attacks, artificial intelligence is used to write persuasive, typo-free messages based on emotional manipulation.

Bowe argued that issuers should monitor the entire customer relationship rather than limiting their review solely to the moment of money transfer. Recommending the use of behavioral analytics, Bowe emphasized that artificial intelligence can assist financial institutions in assessing fraud attempts.