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Fraud & Identity Theft - The Shifting Landscape

A Report by CYS Global Remit FinTech Development Team 



Continuing the article by Fintech News Singapore on the shifting landscape of fraud and identity theft in 2024, let’s talk about the common fraud techniques.  


Synthetic Identity Fraud on the Rise  


Synthetic identity fraud is on the rise, fueled by the emergence of AI generative models such as DALL-E and ChatGPT. These models swiftly generate fake yet convincing identities, allowing criminals to create synthetic identities at scale.   


By blending leaked real personal data from breaches with AI-generated information, fraudsters can produce credible but fictitious identities. Research by LexisNexis Risk Solutions indicates that the Asia-Pacific (APAC) region is poised to experience significant increases in synthetic identity fraud in 2024.   

As banks transition to digital-first models, criminals exploit online vulnerabilities to open fraudulent accounts using synthetic IDs.  


Fraud-as-a-Service Allows Automation of Attacks   


The advent of AI generative models has led to the emergence of new Fraud-as-a-Service offerings. Criminal groups utilize these automated services to quickly learn bank processes and develop customized social engineering scripts.   


By overcoming traditional call centre challenges, Fraud-as-a-Service enables large-scale attacks targeting specific banks. New account fraud and application fraud are particularly vulnerable, as criminals rapidly fabricate seemingly authentic identities.  


The Menace of Deepfakes and Disinformation  


The exponential growth of APAC’s digital economy has ushered in new disinformation threats, driven by advanced deepfake technologies. These technologies enable the effortless manipulation of audio, video, and images to propagate fake news or tarnish individuals' reputations.   

 

As deepfakes become more accessible and difficult to detect, organizations face challenges in combating forged content. Cybercriminals leverage deepfakes for extortion, brand sabotage, fraud, and other illicit activities.   


APAC has witnessed a 1530 percent increase in deepfake incidents, with Vietnam and Japan at the forefront of attacks. Japan's prevalent use of deepfakes in the entertainment industry raises concerns about potential misuse in other sectors, while Vietnam's thriving digital economy and substantial online population present lucrative targets for cybercriminals.  

  

In the upcoming week, we will explore strategies that CYS Global Remit is adopting to adapt to this ever-changing landscape. 

 

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