As financial fraud becomes increasingly sophisticated, businesses and financial institutions must evolve rapidly to stay ahead of fraudsters. In a recent panel discussion, experts from across the industry gathered to explore the shifting landscape of financial fraud, including emerging threats, innovative defense strategies, and the crucial role technology plays in combating financial crime.
The session was led by Sandy Lavorel, Head of Fraud Intelligence at NetGuardians, and featured insights from distinguished panelists: Sue-Lin Wong, Southeast Asia Correspondent and Host of Scam Inc. Podcast at The Economist; Pallavi Kapale, Senior Financial Crime Officer at the Financial Intelligence Unit (FIU), Bank of China; Annick Moes, Head of Industry Issues and Cooperation Initiatives at the Euro Banking Association; and Romano Ramanti, Ethical Hacker at Zürcher Kantonalbank (ZKB).
If you missed the session, here’s a breakdown of key insights shared by our panelists on how organizations can strengthen their defenses in today’s rapidly changing fraud landscape.
As Sue-Lin Wong pointed out, fraud is not new — but the tools fraudsters now use are. The internet, cryptocurrencies, and AI have radically transformed fraud, making it easier to impersonate institutions, trick victims, and move money quickly across borders. From pig butchering scams targeting bank CEOs to criminals posing as tax officers in white vans, today's scams are personalized, convincing, and often devastating.
Fraudsters are now omnipresent — infiltrating LinkedIn, sports apps, and TikTok — and are quick to adapt to new opportunities and vulnerabilities.
AI is increasingly being used by fraudsters — generating realistic phishing emails, mimicking communication styles, and automating scams using tools like WormGPT. But it’s also a critical tool in the fight against fraud.
Pallavi Kapale stressed the importance of financial institutions adopting advanced AI tools for real-time fraud detection, transaction monitoring, and behavioral analytics. Yet, adoption remains uneven. While top-tier banks in the UK are leveraging sophisticated systems, many mid- and lower-tier institutions are still tied to legacy infrastructure, leaving significant vulnerabilities.
A major hurdle to effective fraud prevention, said Pallavi, is the reliance on outdated, in-house systems and fragmented organizational structures. Teams often operate in silos, with fraud prevention and transaction monitoring systems that are not fully integrated — leading to missed red flags and slow responses.
Crucially, she noted, by the time many banks catch up, the money has already left the account — often across borders — making recovery nearly impossible.
Pallavi Kapale drew attention to a troubling rise in highly targeted scams, including police impersonation schemes aimed at Chinese students in the UK. These scams are psychologically sophisticated, playing on fear, isolation, and unfamiliarity with local systems. Victims are coerced into handing over large sums of money under the guise of official investigations. She also warned of other rapidly growing fraud types, such as AI-powered invoice fraud, identity theft, and crypto investment scams proliferating on social media.
Another concern: the closure of physical bank branches is removing a vital line of defense. In-person banking once enabled staff to detect distress or intervene via the “banking protocol,” stopping suspicious transactions before they went through. As these safeguards disappear, fraudsters gain ground—especially among the most vulnerable populations.
One of the clearest messages came from Romano Ramanti and Sandy Lavorel: fraudsters share information — banks often don’t. While criminals operate in coordinated networks, banks remain cautious, often citing GDPR, data protection, or bank secrecy. But this is a misconception. GDPR does not prohibit sharing fraud-related data, especially when it's in the public interest. A mindset shift is needed.
Some EU countries still resist collaboration — with some even stating they won’t share data with institutions outside Europe, regardless of upcoming PSR regulations. This creates a systemic blind spot. As Sandy stressed, we don’t need one defense — we need many. Real-time fraud intelligence sharing is one of the strongest shields we have. Without it, even the best AI and rule-based systems fall short.
Annick Moes offered a candid view: while regulation plays an important role, it's rarely fast or flexible enough to match the pace of innovation among criminals. Fraudsters move fast, collaborate seamlessly, and pivot quickly to new methods. Regulatory frameworks, in contrast, tend to be reactive and rigid.
A shift in mindset is needed — one that balances privacy with practicality and recognizes that fighting fraud is a collective responsibility that demands real-time cooperation.
Key Takeaways: How to Strengthen Your Fraud Defenses
• Invest in real-time monitoring and AI tools, especially for behavioral analytics and transaction analysis.
• Modernize legacy systems to enable faster detection and response.
• Break down internal silos between fraud teams, compliance, and customer service.
• Engage in insight-sharing initiatives across institutions and borders.
• Educate vulnerable populations, who are frequent scam targets.
• Push for smarter regulation that empowers collaboration while respecting data protection.
The fight against financial fraud is a race — and right now, criminals are ahead. But with coordinated effort, smarter tools, and a willingness to share intelligence, the tide can be turned.
As Sandy Lavorel concluded, no single defense is enough. But together, the financial industry can build a stronger, smarter, more connected shield to protect customers and institutions alike.
Watch the Full Panel Discussion
If you missed the live session or want to dive deeper into these insights, you can watch the full recording. The discussion is packed with practical strategies and expert commentary to help your organization stay ahead in the fight against financial fraud.