As organisations embrace emerging payment methods in 2024, they must balance this enthusiasm with clarity and responsibility regarding their potential pitfalls. With conscientious progress, the benefits of innovation can become a reality whilst prioritising safety.
To mitigate risk, fintech leaders must band together and invest in specialised fraud talent and ethical AI to get ahead of emerging dangers. If done correctly, it is possible to collectively transform payment systems for the better. The road ahead will challenge norms. But financial pioneers committed to progress secured by vigilance will reap the benefits.
Here are some predictions for the payments landscape for the financial industry to keep an eye on:
AI to Trigger Cyber Threats
Entering the new year, Business Email Compromise (BEC) is a growing challenge, intensified by organised crime groups leveraging the potency of AI in their fraudulent efforts. The financial industry must brace for an impending surge in investment scams. Originating in the UK and Australia, these scams are now infiltrating the US, with a looming threat of spreading across Europe. The battleground against cyber threats is escalating, demanding heightened surveillance and decisive action from the industry. Employees must play their part and act as a wall of defence for their organisations.
Possible Sources of Financial Crimes Heading into 2024
The momentum behind ESG creates an opportunity rife for exploitation. As trillions pour into ethical funds amidst limited infrastructure, bad actors are certain to siphon investments. Additionally, the breakneck pace of payments regulation worldwide lays the foundation for more sophisticated laundering tactics to propagate. With focus scattered in multiple directions, cracks form for organised crime to infiltrate. Financial institutions must expect complex new fraud tactics taking advantage of disparate global policies.
Fraud becomes harder to detect
As AI emerges as an imminent opportunity for payments, it can also be a threat as it renders red flags in scams more elusive. Brace for an era where the battle against deceptive fraud scams reaches unprecedented challenges.
To overcome this, leaders must arm themselves with equal measures of technological innovation, specialised talent, and an obsession with continuously evolving prevention measures.
We anticipate threat actors will leverage AI to make their social engineering attacks and business email compromise scams difficult to spot. Messages and requests will mirror trusted partners and employees with uncanny accuracy. Red flags in language, timing, and behaviour will fade from view making it harder to spot these scams.
Payments to continue focus on cybersecurity
Ruthless in its impact, fraud prevention and detection stand as the vanguard against the threat of deceit. Companies must elevate their game, mastering the art of onboarding, rigorous transaction screening, and an unwavering commitment to duty of care. A new era demands heightened standards; the onus is on businesses to fortify their defences.
In tandem, regulators and governments must evolve, intensifying the war on fraud by bolstering prevention measures, particularly in the realm of communication.
Security with the Speed of Real-Time Payments
In the era of lightning-fast real-time payments, security is non-negotiable. As transactions surge in the new year, so do the imperatives of robust screening. Customer demand for instant access and control intensifies. Companies must follow a narrow path, aligning business strategy with real-time dynamics while staunchly mitigating the escalating risks. Speed demands security and only those who manage the balance will reap the benefits.
Preparing for the Road Ahead
As financial systems move towards greater integration with instant payments and emergent technologies, risks mutate and intensify. However, peril brings possibilities – for those who are open to change. Payment leaders must brace with eyes wide open, renouncing complacency in an industry fraught with threats. Investing in specialised fraud talent and AI safeguards today paves the road to prosperity tomorrow.
United, regulators and industry leaders can reverse the rising tide of risk. With foresight, fraud can give way to financial integrity and the time for transformation is now.
