Formica AI & FinTech Journal

Young Banking Customers Lose Money to Fraud

Almost half of 25–34-year-olds have been victims of financial fraud, with an average loss of ￡570, and 22% of them had to wait up to two weeks to get their money back. Despite significant investment in security measures, 34% of 25–34-year-olds doubt their bank's security. In 2022, ￡1.2 billion was stolen through transaction fraud, and cases of Authorized Push Payment (APP) fraud increased by 22%. While older generations are less likely to be victims, those over 55 lose the most money to fraud, with an average loss of ￡938 per attack. To address the rise in banking fraud, banks are integrating new safety measures, but 40% of consumers would like the ability to opt out of some security measures. Young adults are more vulnerable to fraud, and there is a growing need for education on the risks and increased security measures from banks.

FinTech Leads AI Integration in Risk

A recent study by Moody's Analytics surveyed over 550 senior compliance and risk management professionals from 67 countries, revealing that FinTech is leading in AI adoption for risk management and compliance. Eighteen percent of FinTech respondents are actively using AI, double the average across all surveyed sectors. In contrast, insurance, asset management, and wealth management are lagging, with only 3% actively using AI. The banking sector closely follows FinTech, with 12% actively using AI. The study highlights a general lack of awareness about AI's potential applications in risk and compliance, with only 26% of respondents rating their understanding of AI technologies as high. There is a need for increased awareness and understanding of AI's capabilities in risk and compliance across sectors.

Black Friday Phishing Emails Increase %237

Security researchers have warned of a 237% increase in phishing emails related to Black Friday and Cyber Monday, compared to the period between September 1 and October 31. Security vendor Egress detected the increase between November 1 and November 14 this year. The event represents a major opportunity for scammers to trick users into handing over logins and personal/financial information or clicking on malicious links or attachments. The vendor predicts a further increase in phishing emails in the succeeding week. Cyber-criminals are deploying a range of tactics to enable these impersonation emails to get through perimeter security and then trick recipients into falling victim, according to Jack Chapman, VP of threat intelligence at Egress.