As AI systems have evolved and become more sophisticated, the risk of fraud targeting corporations and consumers has increased. In a recent cybercrime case, artificial intelligence-based software was used to pressure the CEO of a UK-based energy company to transfer funds to what he believed was an outside supplier.

The CEO, who believed he was speaking on the phone to his boss, was asked to send the money − $243,000 − to a Hungarian supplier within an hour.

During the subsequent investigation of this fraudulent transaction, the CEO said he believed he recognized the accent of his boss, the chief executive of the firm’s German parent company. That is, the perpetrators appear to have used AI-based software to mimic the executive’s voice.

In a closely related discussion, tomorrow, September 12, at 9:30 am EST, the US House Committee on Financial Services Task Force on Artificial Intelligence will hold a single-panel hearing, “The Future of Identity in Financial Services: Threats, Challenges, and Opportunities.” The hearing, which will be available via livestream, will address AI and data security concerns.

We’ll be following the hearing – check back soon for an update on the discussion and more insight into the challenges posed by AI.