A Fintech News Singapore webinar highlighted accelerating use of generative artificial intelligence in fraud and the rising threat of deepfakes to financial institutions across Asia, citing a 456% rise in reported Gen AI-enabled scams between May 2024 and April 2025 and describing sharply increased deepfake activity in the APAC region.
WEBINAR FINDINGS
Presenters in the webinar described how generative AI has made fraud both more convincing and easier to scale, a development that industry participants said has forced banks and fintechs to reassess identity verification and transaction monitoring processes. The event noted that reports of Gen AI-enabled scams rose by 456% in the 12 months to April 2025, and it said deepfake incidents have surged across multiple markets in Asia.
Participants outlined the operational pressures that this uptick in synthetic identity threats created for fraud teams, compliance units and customer service operations. The webinar emphasised that existing authentication methods and legacy verification processes are under growing strain because AI tools can be used to replicate voices, synthesise realistic video and generate forged documentation at scale, increasing the risk of impersonation and social engineering attacks aimed at banks' clients.
Speakers identified the immediate priorities for institutions as strengthening identity checks at onboarding, expanding biometric and liveness-detection capabilities where appropriate, and improving detection of AI-crafted content in customer communications and documentation. The webinar also discussed how financial firms are rebalancing fraud prevention investments, with a greater focus on layered authentication and technology to detect anomalies in account behaviour.
MARKET AND REGULATORY IMPLICATIONS
Industry responses to the rise in Gen AI-enabled scams and deepfake activity are likely to affect product development, third-party vendor selection and compliance budgets across APAC. Institutions that move quickly to deploy enhanced identity verification and monitoring technologies could reduce losses from account takeover and impersonation fraud, but they could also face costs and operational complexity in integrating new tools into existing systems.
Regulators and compliance teams in the region are expected to scrutinise how financial firms classify and mitigate AI-related fraud risks. The webinar flagged that increased regulatory attention could follow as authorities seek to protect consumers and maintain market integrity. That attention may take the form of updated guidance on Know Your Customer processes, expectations for fraud controls and oversight of third-party identity verification providers, although the webinar did not specify regulatory actions or timelines.
For banks and fintechs operating across multiple jurisdictions, the differing regulatory approaches in Asia complicate strategy. Firms must balance the need for stronger identification and authentication with customer experience concerns, especially for low-friction digital channels where conversion and retention matter. The webinar underlined the operational trade-offs between tighter controls and the potential for increased customer friction during onboarding or when customers seek to resolve disputes.
Vendors offering solutions for biometric verification, synthetic-media detection and advanced transaction monitoring may see increased demand as financial institutions seek to counter AI-enabled fraud. The webinar analysis suggested that firms will evaluate providers on detection accuracy, integration ease and the ability to keep pace with rapidly evolving AI capabilities.
Finally, the webinar stressed that addressing the deepfake and generative AI threat requires collaboration across industry, including information sharing and standard-setting for detection and response. Banks and fintechs face a practical choice between incremental upgrades to legacy systems and broader modernization programmes that embed AI-aware risk controls into core operations.
Sources: Fintech News Singapore