FATF Warnings On Risks Of Cyber Enabled Fraud – How To Tackle Those Risks While Relying On Existing Tools?

Background

Conscious of new risks arising from digitalisation, emerging technologies and evolving scam tactics, the Financial Action Task Force ("FATF") published a paper raising awareness on threats of cyber-enabled fraud. This paper examines how to harness existing FATF standards to combat cyber-enabled fraud (the "Paper").

Cyber-enabled fraud is now one of the most widespread forms of crime. Fraudsters rely on emerging technologies, such as AI and AI-enabled deepfakes, to enhance their criminal abilities. Fraudsters use phishing emails, fake websites, social media advertising, messaging applications and other cyber-enabled means to perpetrate scams remotely and at mass scale. This is further enhanced by the increasing use of virtual assets and instant and cross-border payment channels with insufficient dedicated mitigation measures.