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Artificial intelligence is rapidly becoming a weapon of choice for financial criminals, enabling sophisticated and scalable fraud schemes, according to experts. The rise of AI-powered tools is enabling fraudsters to refine existing techniques and create entirely new avenues for deception.

One prominent example is the use of AI-generated voice clones, powered by large language models, to mimic trusted individuals. This tactic, coupled with synthetic identities built on stolen personal data, is proving particularly effective in targeting vulnerable populations. A recent case saw a Canadian criminal network exploit voice over internet protocol technology to swindle elderly US citizens out of a staggering $21 million.

Synthetic identity fraud alone now costs banks an estimated $6 billion annually, making it the fastest-growing financial crime in the US. AI algorithms can now convincingly bypass voice authentication security measures, while other AI-powered systems are used to identify prime targets for advance-fee scams. The ability to conduct tens of thousands of simultaneous digital conversations means that fraud attempts can be deployed at a scale previously unimaginable. The rapid advancement of AI is not just accelerating fraud, it’s fundamentally transforming it, creating a landscape where new and amplified attack vectors are constantly emerging.