While artificial intelligence is widely used for fraud and scams, fraudsters are getting increasingly frustrated with detection systems used by banks and other organizations to spot use of the technology, according to a new report on the global state of fraud by LexisNexis.
The report noted that an estimated 85% of identity fraud cases use generative AI tools. However, fraudsters are venting their frustration in dark web forums about which anti-fraud efforts are pain points for them.
“These include real-time liveness [know your customer] checks, phone and email risk analysis, account activity checks, device fingerprinting and IP analysis,” it said.
The report also found that demand is outpacing supply for “verification mules” – a type of money mule used for bypassing identity checks. While some fraudsters are turning to generative AI to create video-swapping solutions that try to bypass live verification, “it’s proving quite challenging.”
“Fraudsters may need more mules than ever, but the candidate pool is starting to shrink as recruits grow wary of the growing risks of arrest and long-term credit trouble mule behavior can bring, resulting in chronic mule-network shortages,” according to the report.
