Fraud isn’t what it used to be. It’s faster, smarter, and infinitely more scalable. AI-powered frauds are growing at an unprecedented rate, with scammers deploying generative AI, deepfake technology, and Fraud-as-a-Service (FaaS) models to bypass traditional defenses. The result? A USD 1 tn global fraud epidemic where only 0.05% of perpetrators are caught.

At Mashreq, we’re shifting the cybersecurity paradigm. Instead of placing the burden on customers with endless OTPs and verification steps, we’re embedding AI-driven security into every transaction. Behavioral biometrics, real-time threat Intelligence, and AI-powered fraud detection allow banks to identify anomalies before they become breaches. By analyzing behavioral data points, banks can detect fraud without disrupting customer experience.

We’ve also made a strategic shift from reactive to proactive security. Our AI models continuously monitor global fraud trends, adapting in real-time to emerging threats. The introduction of technologies like device binding and invisible authentication means security is no longer a hurdle but rather built into the experience.

We also rolled out advanced fraud protection solutions using AI and biometrics. We recognize that traditional authentication methods, such as SMS OTP, are vulnerable to SIM swap fraud and phishing attacks, that also lead to significant operational costs for the bank. We identified the need for a more secure, cost-efficient, and frictionless way to protect customer transactions while ensuring a seamless user experience. We have implemented features such as device registration, biometric verification, and risk-based authentication, and are reducing dependency on traditional authentication methods like SMS OTPs, while enhancing security. This multilayered framework securely binds devices using Emirates Face Recognition, dynamically assesses transactions in real time, and tailors authentication based on risk, ensuring frictionless approvals for low-risk activity and robust protection for high-risk ones via biometric or PIN verification. By eliminating SMS OTPs, it enhances security, reduces costs, and gives customers greater control.

But technology alone isn’t enough. Fraudsters rely on human error, exploiting fear and urgency. That’s why education remains a cornerstone of our strategy. By integrating cybersecurity awareness into digital banking, we ensure customers recognize threats before they fall victim to them. We are also embedding fraud prevention awareness directly into our digital journeys to guide customers at key touchpoints.

The financial industry must stay ahead of these escalating sophisticated frauds. AI can be used for deception, but it can also be harnessed for protection. The future of cybersecurity needs to go beyond just about preventing fraud – it’s about making fraud unthinkable.

Olivier Busolini, Head of Information Security, Mashreq

&

Gurcharan Chhabra, Head of Fraud Prevention & Intelligence, Mashreq

Tags: