Ask Sumsubers: How do I fight AI-generated fraud?

Thomas Taraniuk

Head of Partnerships

Sumsub keeps getting questions from our followers about the specifics of regulatory compliance, verification, automated solutions, and everything in between. We’ve therefore decided to launch a bi-weekly Q&A series, where our legal, tech, and other experts answer your most frequently asked questions. Check out The Sumsuber and our social media every other Thursday for new answers, and don’t forget to ask about the things that interest you.

This week, our Head of Partnership, Thomas Taraniuk, will talk about the ways to fight AI-generated fraud.

Follow this bi-weekly series and submit your own questions to our Instagram and LinkedIn.

How do I fight AI-generated fraud?

As we’ve discussed in our What the Fraud podcast, AI-generated fraud is one of the most worrying threats of today. It goes without saying that deepfakes are at the center of some of the biggest scandals in the world of politics and entertainment. When it comes to businesses, it’s essential to look out for fraudsters employing AI technologies to bypass the verification process and abuse the company.

AI-generated fraud is a complicated topic since it can take on different forms. For example, a person can use AI-powered technologies to generate a deepfake mask, or a fake virtual ID, to pass verification and register on a platform. Some criminals can even create fraud networks that consist of multiple synthetic accounts. They then get used to perpetrate a wide range of digital fraud, including money laundering, bonus abuse, fake reviews, and more. All of these threats need to be addressed differently in order to successfully prevent them.

We also need to keep in mind that, as soon as a new fraudulent scheme gets created, a new solution emerges.Various vendors have already created deepfake detector solutions. When it comes to forged documents, there are advanced verification methods that employ AI technologies themselves. Finally, to fight the spread of fraud networks, companies need to implement efficient behavior intelligence and transaction monitoring solutions.

The bottom line here is that companies need to use technological advancements to their benefit. Therefore, they shouldn’t simply demonize AI; they should use it just like any other tool. AI and machine learning technologies allow companies to analyze vast datasets, identifying unusual patterns and anomalies that may indicate fraudulent activity. This can be used in spotting phishing scams and problematic links. AI can also verify users with biometric checks, device fingerprinting, face recognition, advanced document verification, and more.

AI allows companies to not just react to the fraud cases that have already occurred, but also prevent new attempts. It can anticipate emerging fraud trends and adapt to new, resulting in a fraud prevention strategy that’s proactive rather than just reactive.

This is exactly how Sumsub’s Fraud Prevention Solution allows businesses to protect themselves from account takeovers, multi-accounting, deepfakes, payment fraud, and many other threats. You can learn more about the product here.