is expected to fuel $40 billion in US fraud losses by 2027.
Now scammers are no longer sitting in isolation.
Modern financial crime now operates with enterprise level efficiency and as the fakes and synthetic identities flood the digital zone, institutions seem more than just patchwork defenses.
They need a unified platform capable of instant risk decisioning.
Well joining us this morning at the New York Stock Exchange to discuss how his organization is.
This critical trust infrastructure is Colton Pond, Chief Marketing Officer at Socure.
Well, Colton, great to have you here.
Thank you so much for joining me.
Thank you.
It's great to be here.
I really appreciate it.
Well, it does appear as though on a regular basis, almost on a daily basis, we continue to hear about these attacks, and we know that hindsight is 20/20.
So give us your assessment of the landscape right now and where your concerns are.
Yes, so it's both scary and exciting.
It's exciting and the opportunity to.
We have, but generative AI and fraudsters are using generative AI at scale to be able to launch fraud attacks.
So a few examples that we see, we have 3000 customers.
We see a lot of fraud attacks.
A few examples we've seen just over the past three months, workforce fraud is a huge problem where folks from North Korea and other countries are coming in through the front door and getting hired, getting onboarded to various companies.
Gartner by 2028 predicts that 25% of job applications will be fake.
Ghost students is another aspect where folks create either stolen or new identities, apply for student loans, get student loans, and then never go to school, and steal that money.
We're seeing in-person fraud.
We're seeing folks use deep fakes at a scale that's crazy, and then we're seeing things like first party fraud where consumers are lying.
73% of consumers admitted to committing an act of first party fraud over the past year, and it's become normalized to lie to companies to be able to get what you want, and we have to do a lot more as an industry.
So we're really excited about using AI to fight AI fraud and really sophisticated intelligent ways and that sentence that you just mentioned.
Really highlights where we are right now, especially when it comes to artificial intelligence, because with that opportunity also comes risks.
So when we're talking about enterprises as well as financial services firms, we know that these are highly regulated industries.
So what should these companies be doing?
One of the biggest aspects is historically these highly regulated companies.
Fintech banks and credit unions have protected what we call the front door of onboarding.
I'm going to make sure that I decrease fraudulent users that are coming in through the front door.
What's happening with AI is fraudsters are using AI.
It decreased their costs to be able to launch fraud attacks, and they're attacking the side door, the chimney, the window.
They're attacking every single vulnerability.
In branch fraud for banks and credit unions accelerate.
We've seen account takeover accelerate.
We've seen scams and other things accelerate with vulnerable populations like elderly.
So you need to look at this continuum of identity being continuous and always make sure you're monitoring and evaluating are my customers the right customers and the customers that I want to.
And another concerning area are deep fakes as well as fake identities and I'm sure many of us as well as our viewers have had this happen to them where they're trying to say open an account, a savings account, or even apply for a credit card, and they keep on handling some of these challenges, and they have to meet.
Someone in person, but if you're talking about online companies, you don't necessarily have that ability.
So what would you say to them when they're facing these challenges and what can companies actually do to make the consumer experience easier?
Yes, great question.
So you have this unique challenge that you mentioned.
You have fraud is accelerating rapid pace and organizations are like.
Increase friction to be able to decrease fraudsters coming through the door, but then you have consumers' expectations of increased personalization, decreased friction.
You have so much data and information on me, you should know who I am and you should let me through the front door as quickly and easily as possible.
So the right answer is a balance between both of them.
And we as an industry fraudsters coordinate and collaborate, and we see lots of things in our network of fraud rings where fraudsters are collaborating, they find a vulnerability and they all jointly attack that vulnerability.
We as an industry need to collaborate as well to be able to increase our data and understanding on good customers, to be able to let them through easily.
And if I know enough data on you, Remy, then I I can easily let you through because I've seen your device.
I know where you're at.
I know your information, but if I see someone trying to apply for an account for you and I know you're in New York and they're in California, I know that's not you and I can increase friction for those users.
There is a way through more data to be able to both decrease friction and let good users through while also decreasing fraud as well.
And finally, before I let you go, we're almost out of time, so we only have 60 seconds.
But for American viewers who are waiting at airport gates right now and they're watching this, what would you say to them that they should be cautious about, especially given the current market environment?
Trust but verify.
So we like to say that trust was the first casualty of the AI era, and for the first time in forever, you can't trust what you see anymore, and we need increased awareness of how the fraudsters are using AI.
And like I said at the beginning, we need to use AI more rapidly like we are at Socure to be able to fight AI fraud in the strategies that fraudsters are using.
Well, it was great having you on the show today, Colton.
Thank you so much for joining us and thank you so much for sharing all of your insights.
