The Impact of AI-Powered Fraud Defenses on the Financial Sector

Serdar HocamAuthor & Editor

Recent research reveals that AI-based security systems offer finance teams results that are far superior and more effective than manual methods.

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Finance Teams Finally Have Proof AI Fraud Tools Pay Off | PYMNTS.com

According to research conducted in collaboration with PYMNTS Intelligence and Bottomline, 77% of companies utilizing AI-powered fraud defense report achieving much better results compared to manual methods.

The Success of AI-Based Defense Systems

Companies have long debated whether artificial intelligence could improve manual controls, and for those that have adopted the technology, the results are becoming quite clear.

Fifty-nine percent of firms using AI tools state that they block at least 90% of fraud attempts before funds leave the business.

Fraud Tactics and Prevalence

Half of the firms indicate that AI-scripted emails masquerading as vendors or suppliers are the AI-driven fraud tactic they encounter most frequently.

Eighty-eight percent of companies encounter such emails at least a few times a year, while nearly a third—32%—face business email compromise cases every month.

Technologies Used and Future Plans

Eighty-three percent of AI adopters favor real-time predictive risk scoring, and 82% prefer automated document verification methods.

Fifty-eight percent of firms currently not using AI fraud detection say they plan to implement this technology within the next 12 months.