AI driven fraud - How AI is used to commit financial crime

Financial crime remains one of the greatest threats for businesses, financial and public institutions worldwide. It drains earnings and may expose both the entity and its senior management to criminal and civil liability. And worst of all, it can significantly damage companies’ most valuable assets – their reputation and their brand value.

The power of AI is lifting the risks of CEO Fraud (Fraude au président) to a new level.

Luxembourg is not immune to the risks of fraud. Its financial sector can be used to transfer illegal money; the interconnectedness between people can lead to an abuse of power; public money can be diverted to the pockets of fraudsters. Efficient prevention and timely detection of fraud are therefore critical to safely manage your fraud risks. This also applies to the non-financial sector, as such organisations are becoming more and more the targets of fraud, as recent scandals are confirming.

This module provides an experience for the staff exposed to AML activities and/or responsibilities to an AI driven fraud analysis through a case study.

By the end of this training, participants will be able to:

• understand the various ways AI can be utilised to commit financial fraud;
• identify the signs and indicators of AI-driven fraudulent activities;
• know what constitutes appropriate and inappropriate actions when dealing with new fraud threats;
• sensibilise people for new threat scenarios driven by technology.

The module will cover:

• an awareness session on AI driven fraud;
• new face of fraud - new risks and threats to which organisations are exposed to;
• case studies demonstrating the GenAI deepfake video/audio;
• measures to prepare for and mitigate AI driven fraud.

The case studies highlights and illustrate the multiple risks faced by AML-exposed staff or senior company executives when dealing with:

• executive impersonation aimed at various objectives (gaining access to confidential information, tricking employees into authorising fraudulent payments);
• other financial fraud schemes, such as document forgery and fraudulent account creation.

This training is coordinated by Michael Weis, Partner at PwC Luxembourg, and delivered by directors and managers with deep expertise in the field.

Michael leads PwC’s Forensic Services practice and AML taskforce, overseeing investigations, remediation projects, and high-profile AML audits for banks and investment funds. He is the key contact for AML distribution due diligence in asset management and works closely with PwC’s global forensic network on international projects. As certified fraud examiner, Michael is recognized as an AML and forensic expert and actively contributes to industry working groups on fraud at the Institute of Internal Auditors (IIA) and the Institut Luxembourgeois des Administrateurs (ILA). He regularly conducts workshops and training on AML and fraud in Luxembourg and abroad.