Asia is ahead of the curve of using AI to fight against fraud. Here is what the rest of the world can get out of it

Hong Kong authorities have launched Scameter, a mobile fraud alert system that informs users of high -risk transactions. Singapore introduced the framework of shared responsibilities, which allocates responsibilities for loss of scam with financial institutions and telecommunications operators, encouraging the implementation of anti-SCAM measures. Likewise, the Australian scam agreement is an inter-industrial initiative between banks, construction companies, credit cooperatives aimed at raising the standard of customer protection to counter the scams.

These movements all represent a strong response to a growing regional threat, illustrated by the “scam compounds” of Southeast Asia: physical centers where criminal unions orchestrate large-scale online scams, including identity fraud, phishing, false investments and money laundering. Disguised as legitimate companies, these sophisticated operations generate billions of dollars per year.

What stimulates this development in financial crime? More and more, it is artificial intelligence. Criminal networks use AI to create synthetic identities, launch massive phishing campaigns and get around traditional security systems – and do it with fewer resources and in record time. While the compounds of the scam are concentrated in Asia, the threat of financial fraud is global.

However, as Asian crime unions make the headlines, banks in the region are quietly leading a change in the way of preventing fraud. Unlike other banks, which use AI for customer personalization and the support of the call center, Asian banks rather apply AI to combat cybercriminals by detection of fraud, identity verification and fight against money laundering.

Why Apac goes beyond the defense of the fraud led by AI

The emphasis on Asia on the prevention of fraud fueled by AI is due to the region’s exposure to financial crime. Asian institutions are in the trenches with regard to cybercrime, pushing them to quickly adopt AI -focused strategies.

The magnitude of the financial loss is astounding. In 2024 alone, the Asia-Pacific region lost around $ 688 billion in fraud, almost two-thirds of the world total. The rapid adoption by Asians of digital portfolios and payment platforms aggravates things: by moving the deployment of protections of solid consumers, this use opens doors to cybercriminals and puts banks on the front line.

Asian banks pave the way to the adoption of ISO 20022, a new messaging standard which allows financial institutions to use AI to precisely detect anomalies and reduce exposure to financial crime.

Same technology, different manuals

Regional priorities change when banks adopt AI. Banks in Asia-Pacific focus on prevention and security of fraud, while European and American institutions rather use AI to personalize products and customer service.

According to our research, just over half of organizations in the United Kingdom wish to use a generative AI to improve the customer experience. This reflects the hyper-competitive market of the United Kingdom, where friendly interactions are essential to gain customer loyalty. The United States divides its AI objective between customer experience and operational automation, supporting both consumer demands for the bank without friction and internal effective objectives.

On the other hand, 58% of Asia-Pacific banks concentrate their investments in AI on the detection of fraud and laundry whitening, well above the global average. Banks in Asia-Pacific are faced with a high-risk landscape where criminal networks use a generative AI for identity fraud, phishing and financial scams. Consequently, the region favors cybersecurity, forcing a clearer and safety strategy focused on security which considers the prevention of fraud as a key competitive advantage.

Above all, AI blurs the distinction between security and service. Increasing cyber-menues mean that customers expect their banks not only protect their money, but also provide clear and precise responses in times of uncertainty. Our work with customers reveals that chatbots and authentication systems powered by AI can accelerate bank staff requests by providing them with information for them 30 to 40% faster than before. This has in turn a training effect for customer satisfaction, customers now evaluating their experiences with chatbots 25% higher than their previous conversations with human agents.

What is the next era of banking requirements

Detection of fraud cannot be isolated in the landscape of threats today. It must be integrated into financial infrastructure. Whether by inter-industrial agreements such as the agreement of the Australian scam, or by the mixture of service and security observed in chatbots powered by AI which authenticate users and solve requests in real time, APAC shows how integrated systems can transform raw data into usable defenses, motivated by AI and aligned with operational needs.

Asia-Pacific’s experience stresses that financial security depends on proactive and non-reactive. Faced with massive fraud losses and complex scam networks, Asian institutions quickly prioritize the prevention of fraud led by AI. American and European peers, on the other hand, treat the prevention of fraud as a request from the possible AI among many. It will be a mistake because the financial crime focused on AI begins to spread on a global scale.

The role of AI in fraud will increase. Asia-Pacific’s strategy shows the value of acting quickly to counter it, integrating the prevention of fraud in financial infrastructure. As global threats increase, the world should turn to Asia, not only as a regional leader, but as a role model for secure and transparent financial transactions.

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