Banks have been dealing with AI-enabled fraud for years, but the current moment looks different in at least one important way: the tools are becoming easier for less sophisticated criminals to use. A recent ProSight piece on fraud mitigation makes clear that while existing controls still matter, banks now need more speed, more layers, and more coordination—both inside the institution and with customers.
What to remember about AI-driven fraud:
AI is lowering the barrier to entry for fraud. Matt Meis, cyber fraud and data manager at Summit Credit Union, said “GenAI is lowering the fraud entry barrier” for newer criminals, even if advanced actors have used machine learning for years. Ray Olsen, senior vice president and director of enterprise fraud management at Wintrust Financial Corporation, added that AI is also increasing the speed of fraud, especially when funds move quickly through mule networks. “The speed gap in real-time payments allows fraudsters to quickly empty out mule accounts and move not only non-illicit funds but also illicit funds at the same time,” he said.
Real-time monitoring needs a longer-term partner. Transaction-level monitoring alone is not enough. Meis said institutions also need data analytics to identify threats “lurking under the hood,” including the phishing and impersonation scams that pose the biggest risks to their own customers. In other words, real-time anomaly detection and trend analysis need to work together.
AI is adding to multilayered fraud defenses. Meis was explicit that new tools should add to existing defenses, not replace them. “There are multiple layers that a criminal or a fraudster has to get through to move funds or attack our customer base,” he said. “Even if we are looking at a new AI tool, we’re not removing any of our other controls.” Olsen described a similar multilayered approach that includes transaction monitoring, SQL, data analytics, and multifactor authentication.
Fraud teams need a seat at the table early. Olsen said fraud leaders need to weigh in before new products are launched, not after. “Make sure that you’re in the room and have a say with the fraud products,” he advised. Meis added that early coordination with the risk team can help banks get fraud modules built into contracts at signing, which “makes implementation go 10 times better.”
Training still matters—a lot. Customer and employee education remains a core part of fraud prevention. Meis said customers are “85% less likely” to fall for a scam if they are educated about it. Olsen pointed to in-person forums as one effective way to spread that awareness beyond the people who attend.
The bigger point: AI may be making fraud operations more scalable, but the response still comes down to layered controls, sharper analysis, and better-informed people.
That emphasis on networking and information sharing also lines up with the ProSight Fraud Alert Network, which is designed to help institutions share intelligence, receive timely fraud alerts, and connect with trusted fraud prevention peers through an authenticated platform.
