Fraud prevention in banking is entering a new era as cybercriminals exploit increasingly advanced technologies, forcing regulators and financial institutions to rethink traditional defences.
According to insights from SymphonyAI, which provides AI SaaS solutions for financial institutions, many banks are still relying on static identity checks and outdated onboarding systems that cannot keep up with AI-driven scams using deepfakes, doctored documents, and voice cloning.
Malaysia has emerged as a frontrunner in this fight. In April 2024, the country’s central bank, Bank Negara Malaysia (BNM), issued an updated e-KYC policy that made biometric verification, including facial recognition and liveness detection, mandatory for digital onboarding.
The biometrics market itself is booming. SymphonyAI referenced data from Aware showing it is expected to hit $83.5bn by 2028 across sectors like finance, healthcare, and government, with a CAGR of 20.1% from 2021 to 2028.
SymphonyAI emphasised that the launch of Malaysia’s National Fraud Portal, which enables rapid information sharing and recovery of stolen funds, is a major step forward in uniting financial institutions to combat fraud collectively.
While some banks globally hesitate over cost and privacy concerns, SymphonyAI observed that Malaysia’s regulatory reforms show the risks of waiting far outweigh the challenges of implementation. Fraudsters are evolving faster than ever, and regulators in Europe and Asia-Pacific are now taking notice of Malaysia’s proactive stance, signalling the start of a wider trend.
This shift is not just about regulatory compliance; it is about control. SymphonyAI stressed that banks adopting biometrics and real-time monitoring can prevent fraud at the source, reassure customers about their security, and stay ahead of both criminals and regulators. As financial crime grows more sophisticated, the real risk lies not in adopting these tools—but in doing nothing.
For financial institutions advancing their digital transformation, SymphonyAI concluded that biometrics and real-time fraud prevention are no longer optional. They are fast becoming the baseline for protecting customers, complying with regulations, and maintaining trust in a digital world.
For more information about the evolution of fraud and scam prevention, read the article here.
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