Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

FCA warns financial services firms over AI fraud

by July 13, 2023
July 13, 2023
FCA warns financial services firms over AI fraud

The head of the Financial Conduct Authority has said that artificial intelligence could disrupt the financial services sector in “ways and at a scale not seen before”, warning that the regulator would be forced to take action against AI-based fraud.

Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), said that there are risks of “cyber fraud, cyber-attacks and identity fraud increasing in scale and sophistication and effectiveness” as artificial intelligence (AI) becomes more widespread, in a speech delivered to executives in London yesterday.

The UK prime minister, Rishi Sunak, is hoping to make the UK a centre for the regulation of AI. The FCA’s work on AI is part of a broader effort to work out how to regulate the big tech sector as it increasingly offers financial products.

In his speech, Rathi warned that AI technology will increase risks for financial firms in particular. Senior managers at those firms will be “ultimately accountable for the activities of the firm”, including decisions taken by AI, he said.

“As AI is further adopted, the investment in fraud prevention and operational and cyber resilience will have to accelerate simultaneously.”  “We will take a robust line on this – full support for beneficial innovation alongside proportionate protections.”

Rathi will used the example of a recent “deepfake” video of the personal finance campaigner Martin Lewis supposedly selling speculative investments.

Lewis said the video was “terrifying” and called for regulators to force big technology companies to take action to stop similar scams.

Responding to the announcement, cyber specialist Suid Adeyanju, CEO of RiverSafe said “AI is set to become a regulatory minefield for the FCA, so maintaining a clear line of communication with businesses about the challenges and opportunities ahead is critical to maintain high standards within the market.

“The tidal wave of AI-enabled cyber attacks and online scams adds a greater level of complexity, so it’s vital that financial services firms beef up their cyber credentials and capabilities to identify and neutralise these threats before they can get a foothold,” added Adeyanju.

Chris Downie, CEO of fraud detection platform Pasabi said: “It’s encouraging that the FCA is recognising the need for firms to rapidly ramp up fraud prevention measures to meet the challenge of AI driven scams and cyber fraud. Cyber criminals and fraudsters are wasting no time in hijacking the technology to create realistic online scams at scale and right now they are winning.

“To reverse this trend, a collaborative approach between the FCA, businesses and fraud software providers will be key to harnessing the latest fraud detection technologies, to start restoring confidence in the financial services market,” added Downie.

Read more:
FCA warns financial services firms over AI fraud

0
FacebookTwitterGoogle +Pinterest
previous post
GDPR fines hit €1.5 billion in first half of 2023
next post
Crisis in working conditions making Brits ill

You may also like

UK house prices rise for third consecutive month,...

October 7, 2024

UK minimum wage to rise to £12.21 in...

October 30, 2024

Almost no trains are running across the whole...

January 5, 2023

Tax Hikes Likely in the Next Five Years,...

June 25, 2024

R&D tax reliefs revamp questioned

April 25, 2023

Companies desperate to recruit skilled workers push up...

February 13, 2023

Killing Kittens seeks £10.5m valuation for global expansion...

November 18, 2024

BT offers staff £1,500 to end pay dispute

November 29, 2022

Interest rate cuts could spark renewed interest in...

August 31, 2024

A new monetary system is required to solve...

December 12, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Harmony Squad: Supreme Court Issues Six Unanimous Decisions

      June 5, 2025
    • Quick Login to AmourFactory: A Beginner’s Guide

      June 5, 2025
    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025

    Categories

    • Business (8,149)
    • Investing (2,011)
    • Politics (15,535)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved