Open AI’s ChatGPT has engulfed the world in a frenzy thanks to its sophisticated Large Language Model that offers practically endless potential. It has been utilised by people in wonderfully creative ways, from scripting innocent stand-up comedies to less innocent use cases, including papers produced by AI that pass university-level exams and content that encourages the spread of fraudulent information.
Many firms are looking into how generative AI may assist with tasks like marketing communications or chatbots for customer service, but others are beginning to question its applicability. Because of concerns regarding its accuracy and worries that it might compromise data security and protection, JP Morgan, for example, recently stopped its employees from using ChatGPT.
Like with any new technology, there are important concerns that need to be answered, not the least of which is whether it can be used to commit fraud or whether it can be used to prevent it. Cybercriminals can use this cutting-edge technology as a powerful tool for simplifying convincing scams, just as brands can utilise it to automate human-like dialogue with customers.
From malware attacks to phishing scams, chatbots might be the engine behind a new wave of scams, hacks, and identity thefts. In fact, researchers recently found evidence that malware code is even being generated by hackers utilising ChatGPT.
The era of phishing emails with terrible syntax is over. Automated conversational technologies can now be trained to emulate writing styles and even certain speech patterns. As a result, cybercriminals can employ these algorithms to create discussions that seem legal but actually conceal fraud or money laundering. Fraudsters have been quick to take advantage of conversational AI, whether it is by sending convincing phishing emails or by trying to impersonate a user to access their accounts or obtain critical information. As a result, when money laundering tendencies are concealed in a dialogue produced by a GPT, it is more challenging for financial institutions and other entities to find them.
Using ChatGPT as a fraud fighting tool
However, there is some good news. Firstly, ChatGPT was created to prevent malicious users from exploiting it by incorporating several security features, including data encryption, authentication, authorisation, and access control. ChatGPT also uses machine learning methods to spot and thwart illegal activity. The system also has defences against harmful bots that make it much harder for dishonest people to use it for bad purposes.
In reality, with the use of technology like ChatGPT, fraud can be actively resisted. Consider fake business emails (BEC), for instance. Here, a cybercriminal compromises a legitimate workplace email account—often through social engineering or phishing—and uses it to acquire personal information or conduct unauthorised financial activities. It is typically used to target corporations with significant sums of money and might involve the theft of money, personal information, or both. It can also be used to pretend to be a trustworthy business partner and ask for cash or private information.
With the help of ChatGPT, a natural language processing (NLP) tool, you may examine emails for ominous language tics and spot irregularities that might be signs of fraud. For instance, it can check the language used in emails against previous messages sent by the same individual to see if it is consistent. Even if GPT will be a crucial component of anti-fraud efforts, it will only make up a small portion of a much larger toolkit.
Financial institutions will need to upgrade their fraud detection and prevention systems and use behavioural biometric intelligence and other cutting-edge authentication techniques to confirm consumers’ identities and lower the risk of fraud as a result of new technologies like GPT. For instance, to differentiate between legitimate users and criminals, banking organisations currently employ advanced behavioural biometric intelligence analytic technology.
Behavioural intelligence will be essential for spotting fraud in the post-ChatGPT era. Behavioural biometric intelligence can help discover anomalies and fraud risks by analysing user behaviour, such as typing speed, keystrokes, mouse movements, and other digital behaviours. It can identify signals that no actual human being is in control of the activity, or that a human is being coached or manipulated. A system can tell, for instance, if someone is attempting to use a stolen account or if another user is attempting to use the same account. Moreover, behavioural intelligence can be utilised to spot shady behaviour, such as unusually high or low usage or abrupt changes in a user’s behaviour.
AI: Paving the Path for Next-Generation Fraud Detection
Therefore, implementing ChatGPT as a tool to prevent fraud could be seen as a complement to these existing fraud strategies and should not be feared. Financial service providers, such as banks, will need to invest in more safeguards to thwart increasingly sophisticated scams. A few of these safeguards include strong analytics to provide insights into user interactions, conversations, and customer preferences as well as thorough audit and logging systems to track user activity and identify any potential fraud or abuse.
Moreover, preventing fraud is not the only concern. Financial organisations should also think about how they may improve the customer experience with the use of conversational AI. With automated customer support services offering quick responses and answers to consumer inquiries, such AI-driven customer service platforms may ensure quick response times and precise resolutions.
ChatGPT has unquestionably kept up with the recent trend of contentious new technologies. It can be used to both encourage criminal activity and close some avenues to it. In a time of complex criminal fraud attacks, financial institutions must fight back with every tool at their disposal.
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.