Scams remain a persistent threat despite growing awareness, largely because they exploit human trust through manipulation and misrepresentation. Unlike traditional fraud, scams often involve victims willingly sharing sensitive information, unaware of the scammer’s true intent until it’s too late.
The financial impact is staggering, with scammers estimated to steal $1.03trn globally each year, according to the Global State of Scams Report 2024.
Unit21, a provider of configurable compliance solutions, has released a new whitepaper titled The Scam-demic: How FIs & FinTechs can fight back against the latest scam threats. The paper explores how scams have evolved and how new technologies are reshaping both the threats and defences.
Generative AI is giving scammers new tools—from crafting realistic phishing emails to creating convincing deepfakes that mimic voices, videos, and images. These tactics can deceive even cautious victims, such as impersonating a family member in need or producing fake compromising photos for extortion.
AI has also scaled scam operations. Criminals can now automate scams, targeting thousands of victims simultaneously, dramatically increasing their success rates.
Unit21 warns that while regulatory efforts are improving consumer protections, they often shift the burden to financial institutions without addressing the root cause. This is especially challenging in an environment where consumers expect instant transactions, leaving little time to flag potential fraud.
The whitepaper outlines how Unit21’s platform helps firms detect scams more effectively using tools like IP data enrichment, counterparty risk analysis, AI agents, and pre-built scam detection rules.
For more insights into how AI and Unit21 can help firms combat the rising threat of scams, read the whitepaper here.
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