Isabella Chase

This roundtable reflects Elevandi’s commitment to considering the social implications of frontier technologies. This included the value of Generative AI to consumer financial protection, and the need to build consumer protection in to AI and Web3 at the Singapore FinTech Festival in 2023.

In an era where financial scams have become increasingly sophisticated, the true extent of their rise remains debated - are we witnessing an actual surge, or is heightened reporting amplifying their presence?

This roundtable session under our Forming Frontier Tech theme will explore the lifecycle of financial scams, focusing on how the rise of digital assets and AI has both facilitated these scams and provided new tools for combating them. Participants will delve into the impact of emerging technologies on Know Your Customer (KYC), Anti-Money Laundering (AML), and onboarding processes within financial services such as cross-border payments and financial instrument investments.

Discussion points:
I. The Journey of a Scam:
- Tracing the evolution of financial scams from traditional methods to sophisticated digital schemes.
- Identifying key stages and tactics used by fraudsters in the digital age.

II. Impact of Emerging Technologies:
- Analysing whether the incidence of financial scams has increased due to advancements in technology or if heightened awareness has led to more reporting.
- Evaluating how AI and digital assets have lowered entry barriers for fraudsters and examining case studies of recent scams.

III. Combating Scams with Technology:
- Discussing innovative applications of AI and blockchain in detecting and preventing fraud.
- Exploring how advancements in KYC and AML technologies can strengthen onboarding processes and enhance security.

The following key industry stakeholders will champion the dialogue:
- Policymakers will highlight their roadmaps for updating the regulatory frameworks to support defenses against scams.
- Financial and professional services will showcase the proactive adoption of cutting-edge technologies to safeguard against fraud.
- Investors will drive the importance of robust fraud prevention measures in the companies they invest in.

The session aims to produce a collaborative action plan detailing:
- Specific technological tools and practices to implement for improved scam detection and prevention.
- Recommendations for policymakers to foster a supportive regulatory environment.
- Strategies for financial services organisations to integrate advanced technologies into their security protocols.
- Guidance for investors on promoting and supporting fraud prevention measures within their investments.
- A commitment to ongoing dialogue and cooperation among industry stakeholders to stay ahead of emerging threats.

Attendees who wish to familiarise themselves with the topic may refer to the reference materials below.
- Generative AI: The future of consumer financial protection?

This roundtable reflects Elevandi’s commitment to advancing adoption of frontier technologies. This includes consideration of the Use of AI/ML in Financial Supervision by Central Banks in a 2024 FutureMatters opinion.

The RegTech Association research has found that the adoption of RegTech or SupTech for supervisors is on the rise with 80% of regulators in the last survey indicating that they had onboarded a solution in the prior 12 months and engagement levels are high. There are still challenges on the needs for regulators and central agencies not being clear on their needs and challenges in onboarding innovation.

Under the theme of Decoding Digital Assets and Payments, this roundtable will be a first step in creating a safe space conversation with supervisors and technology companies. It will feature presentations from BIS and Central Banks from Europe as well as technology companies in the SupTech/RegTech arena. The presentations will be followed by a moderated discussion that will crystallise the points from the speakers and unpack the opportunities, barriers and the new horizons with input from the attendees of the session.

Attendees who wish to familiarise themselves with the topic may refer to the reference materials below.
- Use of AI/ML in financial supervision by central banks
- Building a more diverse suptech ecosystem: findings from surveys of financial authorities and suptech vendors (bis.org)
- The RegTech Association - Industry Perspectives 2023 (regtechglobal.org)