How Generative AI is Fueling Payout Fraud—And How to Stop It

Generative AI has taken the business world by storm, with companies building their own models, like ChatGPT or Genesis, and teams integrating AI into daily workflows to enhance efficiency. While AI advancements are opening doors into new realms once thought unimaginable, Generative AI is more than a tool for success.

In this blog, we’ll explore how advanced fraud schemes target payouts and how Runa proactively safeguards your payouts. Through threat detection, data encryption and a multi-layered security approach, Runa ensures your business, revenue and recipients are protected.

Security challenges posed by the rise of AI implementation

Generative AI is revolutionizing many industries, but it’s also activating fraudulent crimes at alarming rates. Fraudsters are leveraging AI power to orchestrate sophisticated payout scams. From synthetic identities to AI-powered phishing and deepfake fraud, the ability to manipulate and bypass security measures has never been more advanced.

The rapid rise of AI-enabled fraud has become a major concern in the payments industry. Generative AI has lowered the barrier to entry for fraudsters, making scams more convincing, automated, and scalable.

Tap into a range of popular gaming options including: 

• In the U.S. alone, fraud attempts rose by 3,000% from 2022 to 2023.
• Payment card fraud is projected to increase by over $10 billion between 2022 and 2028.
• Financial crime is reaching record levels—fraud scams and bank fraud schemes resulted in $485.6 billion in global losses in 2023.
  
  

The AI-enabled fraud tactics targeting payouts

Fraudsters employ various tactics to compromise the payout experience: 

1. Synthetic identities and deepfake documentation: Fraudsters use AI to create legitimate-looking fake documents and identifications that can be used to claim multiple payouts. This can include fake IDs, passports, and business registrations to bypass KYC/KYB verifications. These deep fake fraud cases have skyrocketed between  2022 and 2023 globally.
2. AI-powered phishing attacks and social engineering: Hyper-personalized phishing emails that trick finance teams into releasing funds. Deep fake voice clones of executives are being used to authorize fraudulent payouts. Cyber-enabled scams, including business email compromise, led to $10 billion in losses globally.
3. Automated bot attacks on payout systems: AI-powered bots create fake accounts to exploit cash back, referral bonuses, and rewards programs. Fraudsters deploy bots to mass-register fake payout recipients, draining funds. In 2023, 80% of organizations were victims of payments fraud attacks or attempts according to treasury practitioners.
4. Account takeovers and credential stuffing: Data leaks are AI’s ammo to compromising payouts. Fraudsters use AI to scan the dark web for leaked credentials and use them to hijack payout accounts. In 2023, fraud scams and bank fraud schemes resulted in $485.6 billion in losses globally. Real-time payments account for 52% of the financial crime threat according to NASDAQ.
   

While these risks sound alarming, fortunately there is a way to use advanced technology to prevent and mitigate these risks.

Runa Assure proactively protects your business from security threats

Runa is committed to ensuring every single payout lands safely and securely. We're dedicated to protecting data and funds for customers, merchant partners, and recipients alike. Our proprietary fraud engine, Runa Assure, detects and blocks AI-enabled fraud attempts in real time, offering a level of security that other fraud models simply can’t match.

While many fraud models focus solely on payment acceptance, Runa Assure delivers multi-layered security, advanced fraud detection, and robust compliance measures for payouts. This ensures secure payouts, protects recipients, and allows businesses to operate with confidence.

Runa Assure offers safeguarding functionality:

• Proactive threat detection: IP allowlisting & multi-factor authentication ensure only authorized recipients can claim payouts.
• AI-powered fraud detection: Deploy AI to detect AI—systems that identify synthetic identities, deepfake documentation, and bot-driven fraud.
• Multi-layered data encryption: Protect sensitive financial & personal information from cyberattacks and breaches.
• Automated compliance and regulatory protection: ISO 27001, GDPR, PCI DSS compliance baked in—ensuring global regulatory adherence.
• Staying ahead of fraud: Cybercriminals evolve fast—regular security updates & fraud awareness training are crucial.

Runa’s unparalleled security bakes in fortified security, compliance and anti-fraud measures into every payout, strengthening security, minimizing the risk of data breaches, reducing compliance burdens, and proactively defending against fraud. 

By using Runa, your business can avoid becoming part of those losing $485.6 billion to fraud and bank scams globally. Runa helps defend your business from loss revenue while shielding you from reputational damage, regulatory fines, and declining customer trust.

Don’t wait for fraud to strike, secure your payouts with Runa Assure

As payout fraud has become a primary target with fraudsters exploiting weaknesses in digital disbursement systems, it’s pertinent to increase your security posture.

Runa Assure is the world’s only proprietary fraud, security, and compliance solution built exclusively for payouts. 

If you are already a Runa customer, you are already benefitting from Runa Assure which is baked into the Runa Platform. 

Not a Runa customer? Take a tour.