UK regulator urged financial firms to strengthen defences against fraud using artificial intelligence

The head of Britain's financial regulator has warned that banks, investors and insurers will have to increase spending to combat fraudsters using artificial intelligence to perpetrate scams.

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Financial Conduct Authority (FCA) chief executive Nikhil Rathi said that as AI becomes more widespread, there is a risk of cyber fraud increasing. He said top managers of firms should be held accountable for this.

As an example, Rathi cited a dipfake video in which prominent personal finance campaigner Martin Lewis allegedly sells speculative investments.

Lewis described his experience as "terrifying". He called on regulators to force big tech companies to take action to prevent such scams.

Rathi believes AI will benefit the financial sector by improving financial models, productivity, and the efficiency of fraud detection and money laundering. However, the technology could also pose potential risks to the industry.

Source: The Guardian