This mirrors the situation in the U.S., where 43% of FIs reported an increase in fraud in 2023 compared to 2022. To combat this, FIs are investing in machine learning and AI technologies, with 66% of FIs with assets of $5 billion or more using these technologies to fight fraud, up from 34% in 2022. The use of AI in crime-fighting varies with the size of the bank, with 97% of those with more than $100 billion in assets using the technology. AI can also help balance security and convenience, according to Hawk AI CEO Tobias Schweiger.
Key takeaways:
- Canada is increasing its use of artificial intelligence (AI) to combat money laundering, with the Financial Transactions and Reports Analysis Centre (FINTRAC) using AI to analyze data and identify suspicious transactions.
- The number of suspicious transactions in Canada has significantly increased, with 560,858 reported for the 2022-2023 financial year, almost five times the amount reported during the 2015-2016 financial year.
- Similar trends are observed in the United States, with 43% of financial institutions (FIs) reporting an increase in fraud in 2023 compared to 2022, and the average cost of fraud for FIs with assets of $5 billion or more rising by 65% between 2022 and 2023.
- More than 40% of banks in the U.S. saw an increase in fraud during the same period, leading to a surge in major fraudulent transactions and financial losses. To combat this, FIs are increasing their investments in machine learning (ML) and AI technologies.