Fraud prevention in banking is being reshaped as cybercriminals exploit AI tools to launch sophisticated scams.
SymphonyAI, a provider of AI SaaS solutions, noted that many banks still rely on outdated onboarding systems that cannot handle threats like deepfakes, voice cloning, and doctored documents.
Malaysia is leading the way with reforms. In April 2024, Bank Negara Malaysia (BNM) introduced an e-KYC policy mandating biometric verification and liveness detection for digital onboarding. SymphonyAI highlighted that this policy reflects growing regulatory urgency to close security gaps before fraudsters exploit them.
The biometrics market is growing rapidly. SymphonyAI cited figures from Aware predicting the sector will reach $83.5bn by 2028, underlining its growing role in fraud prevention across finance and beyond.
BNM has also launched the National Fraud Portal, enabling real-time information sharing and recovery of stolen funds. SymphonyAI said this collaboration between regulators and banks sets a new benchmark for coordinated fraud prevention efforts.
Globally, many banks remain hesitant due to cost and privacy concerns. But SymphonyAI warned that delays carry bigger risks as cybercriminals advance. Biometrics and real-time monitoring, it stressed, are fast becoming essential for safeguarding customer trust and complying with evolving regulations.
For more information about the evolution of fraud and scam prevention, read the article here.
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