Banks are increasingly adopting behavioral intelligence and artificial intelligence to detect social engineering scams where customers are manipulated into authorizing fraudulent payments from their own accounts.

Key Points

• Fifty-five percent of financial institutions report that social engineering is involved in the majority of their fraud cases.
• Behavioral intelligence tools identify suspicious interaction patterns, such as unusual hesitation or uncharacteristic transfers, to flag potential manipulation.
• Eighty-three percent of surveyed institutions consider behavioral intelligence effective, though only 18% have fully deployed the technology.
• Approximately 69% of North American institutions expect new regulations requiring bank reimbursement for authorized push payment fraud within two years.
• Ninety-one percent of banks believe AI significantly reduces investigation times by automating case prioritization and timeline construction.
• Eighty-one percent of fraud professionals now hold dual responsibilities in cybersecurity to better address converging digital threats.

Why it Matters

As criminals increasingly exploit legitimate customer credentials, banks face mounting pressure to shift from traditional technical checks to monitoring real-time user behavior. This transition is critical for managing the rising financial and operational risks associated with impending reimbursement regulations and high-volume fraud investigations.