FATF Flags Emerging Technology Driven Risks
Key Highlights:
- FATF Vice-President Vivek Aggarwal urged fintech firms to increase security investments.
- Emerging technologies are creating new risks for financial systems.
- AI can be exploited for financial crime and scams.
- Scam compounds remain a growing concern.
- Quantum computing could eventually challenge existing encryption systems.
- Fintech companies need greater investment in risk management and countermeasures.
- Aggarwal called for timely action as India’s fintech sector expands.
Mumbai, Sep 10 — The fintech industry needs to step up investments to tackle emerging threats from artificial intelligence, scam compounds and other technologies, FATF Vice-President Vivek Aggarwal said.
The Financial Action Task Force (FATF), a Paris-based global body that sets standards for combating money laundering, terrorist financing and proliferation financing, has highlighted the growing technology-driven risks facing financial systems.
Aggarwal said artificial intelligence can be misused by criminals, making it important for the same technology to be deployed to identify and prevent financial crime. The evolving threat landscape requires continuous vigilance, creating what he described as a “cat and mouse game” between financial institutions and criminals.
The risks extend beyond AI. Scam compounds and developments in quantum computing could create additional challenges for financial institutions, including potential threats to existing encryption and cryptographic systems.
For the rapidly growing fintech industry, one of the key challenges is ensuring that investments in security and risk management keep pace with technological and business expansion.
Aggarwal noted that companies may not always have sufficient focus, resources or time dedicated to addressing emerging threats. He stressed the need for the industry to recognise these risks early and take timely action rather than waiting for them to materialise.
As India’s fintech ecosystem continues to expand, stronger investment in technology, security and risk controls will be increasingly important to protect the country’s broader financial and economic growth.
