ARTIFICIAL intelligence (AI) is strengthening security in Malaysian banks, but the same technology is being harnessed by criminals to commit fraud, scams, and identity theft, experts have warned.
Speaking at the 15th International Conference on Financial Crime and Counter-Terrorism Financing 2025, Carlotta Zenere, Programme Management Officer at the United Nations Interregional Crime and Justice Research Institute (UNICRI), said criminal syndicates—rather than terrorist groups—are currently the leading actors exploiting AI.
"These organised crime networks use artificial intelligence, cyberattacks and other sophisticated techniques to disguise their identities and commit fraud of all kinds," she said.
"They don't operate alone; they rely on intermediaries and proxies, some of whom are linked to state actors. That's the reality. While extremist organisations such as the Islamic State have used technology mainly for propaganda and fundraising, their use of AI remains relatively unsophisticated compared to the tactics employed by profit-driven crime networks," Zenere added.
Meanwhile, Jason Shane, Head of Strategy and Innovation at SymphonyAI Financial Services, discussed the future of biometric verification at automated teller machines (ATMs).
He cautioned that fingerprint authentication alone may not be sufficient, highlighting more advanced AI-driven systems capable of detecting subtle human indicators such as blood flow beneath the skin to confirm the presence of a real person.
"There are companies we work with where the technology is profound, using AI to identify blood flow below the skin to ensure there's a true human at the end of it," he said.
Shane acknowledged that fingerprint-based systems are vulnerable to cloning or spoofing but said developments in voice and facial recognition are progressing rapidly.
He added that AI, biometrics, and real-time data analytics could soon provide more secure and seamless verification experiences for ATM users.
"I'm not sure about the whole fingerprint approach because there are ways it can be cloned," he said. "But I continue to be optimistic about the technology coming through, and the companies we're working with give me confidence that the industry is moving in the right direction."
Shane also noted that card cloning remains a pressing concern for many banks, reinforcing the need for innovation in verification methods.
Edward Ling, chief executive of the Asian Institute of Chartered Bankers, said Malaysian banks are keeping pace with global standards, with roughly half of financial institutions reporting active AI integration in operations. - November 5, 2025
