Artificial intelligence (AI) is being integrated with modern life in a number of ways, and fintech is no exception. However, more digital options mean more cybersecurity vulnerabilities, and as AI introduces intelligent apps and software programs, it opens additional windows for insidious access by cybercriminals.
By nature, fintech handles large amounts of personal and financial data for customers, making it all the more important to protect that information. AI innovators have created new vulnerabilities, but they’ve also begun to offer security solutions. On the one hand, AI can feel like a cybersecurity risk; on the other, security-focused AI can mitigate those risks.
How AI Leaves Fintech Companies Vulnerable
For some fintech startups, taking unlawful risks is all part of the plan, and they often find ways to get around regulations to be profitable. Peer-to-peer (P2P) lending companies, for example, may give loans to money launderers or fictitious businesses without the lender being aware of what their money is being used for. AI makes it possible for lenders and borrowers to move through the lending process faster through quicker approvals, funding and underwriting. In legitimate transactions, this is beneficial. However, that swiftness also makes it harder to catch or recognize a fraudulent transaction before …