When the Fraudsters Have AI Too — Inside the New Fraud Reality with Tyler Allen
episode
One Vision Podcast — Fintech, Banking, and AI with Theodora Lau
38 min
1 speaker
8 chapters
transcribed 1 month ago
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Transcript generated automatically by AI and may contain errors.
Why is AI now a bigger threat to financial institutions than ever before?
Yeah. Hello everyone, welcome to a brand new episode of One Vision. This is Theo, your host for today's episode. Joining us on the show today is the newly minted CEO of Unit 21, Tyler Allen. Welcome to the show, Tyler.
Thank you, Theo. It's an honor to be here. Uh it's been great getting to know you and yeah, a real pleasure.
And you had me at Robot. That was actually how you, me and Darius um got together in a conference in Vegas. That felt like a long time ago. Anyway, so think right.
How is AI fueling the recent $1.3 trillion surge in global financial crime?
That was just crazy.
We walk right by like a world uh a lifetime ago. Um but we slightly appreciated our robot swag.
This is this is like, you know, this is the very subtle plea to your marketing team. Hello. People love robots. So anyway, so let's get into speaking of robots. Um talking about AI and fraud. It it is the hot topic of the year, that is twenty twenty six. As much as we keep talking about how AI is improving efficiencies and creating all these Interesting products in the banking space. Bad actors are also using the technology to do things that we really wish they wouldn't do. But voila um people always go where the money is. And so according to the Nasdaq Verifant's latest global financial crime report, since twenty twenty three, illicit financial activity has gone up by one point three. Trillion dollars, so now we're looking at four point four trillion.
is not a small number. So I have two questions then for you. First is from where you're sitting, right, working with financial institutions, helping them out navigate this this um landscape, if you will. Is the gap between the threat that we see in front of us versus the FIs that are able to close it, is that gap widening or getting smaller? And What kinds of institutions do you see that are able to tackle this better than the others?
Yeah, great question. So
What causes alert fatigue in fraud teams and how can AI eliminate it?
I I love that stat and it's weird to say that about a negative stat. But I think it does a good job of painting the picture of the growth of financial crime. And if you compare that to GDP as an example, um the average kind of transaction is now less safe than it was before. So crime is kind of like outgrowing the economy. And People's kind of uh thesis around this is AI. Makes sense. Uh previously before you'd have to have rooms full of fraudsters, there's YouTube videos about this that are actually pretty interesting. We as an organization, you know, I've been at Unit Twenty One for for seven years now, so I've had uh the privilege of talking with a lot of the best kind of fraud professionals in the space, including ex fraudsters, right?
And a lot of the, you know, before times, and I I'm I'm certain this still goes on, is kind of room fulls of people that get taken advantage of that are now defrauding other people. And so it's a sad story all around. Now they have AI tooling. So the whole uh your name is misspelled, uh this conversation doesn't make any sense. Uh I'm limited by the number of humans that I can have defrauding other people. That's kind of gone out the window. And in the world of fraud versus the world of preventing fraud, they just have to get it right maybe one out of a hundred, one out of a thousand times, right? And they win. Versus deploying AI on the fraud prevention side of things, you have to be right ninety-nine out of a hundred times, right?
Which types of financial institutions are adopting AI fastest and why?
You can't um, you know, you you want to balance reducing Reducing friction for your users as they onboard. You want to balance, you know, actually shutting down an account that actually isn't fraudulent. And so yeah, it's definitely a challenge for the industry. I would say that in general, there's there's been a big surge in demand for AI in our space. And it's still laggered compared to other industries because it's heavily regulated. And in general, especially as you move into more traditional bank. banks and credit unions, they're slow moving on technology. I've been talking with chief innovation officers and their projects before AI were migrating to cloud. And you know, cloud kind of came out, I don't know, fifteen uh years ago, became established and they're still kind of moving towards that and uh
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Chapters
8 chapters
1
Why is AI now a bigger threat to financial institutions than ever before?
0:01–0:41
2
How is AI fueling the recent $1.3 trillion surge in global financial crime?
0:41–2:27
3
What causes alert fatigue in fraud teams and how can AI eliminate it?
2:27–3:53
4
Which types of financial institutions are adopting AI fastest and why?
3:53–7:00
5
What are the most important questions to ask a fraud‑AI vendor before buying?
7:00–10:19
6
How can you move an AI fraud pilot to full production without failure?
10:19–16:00
7
What key lessons did Tyler learn on his path from engineer to CEO of Unit 21?
16:00–19:34
8
Which books, podcasts, and resources does Tyler recommend for staying ahead in AI‑driven fraud?
19:34–38:17
Speakers
1 identifiedMore from One Vision Podcast — Fintech, Banking, and AI with Theodora Lau
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