ITWeb TV: AI-driven fraud rises as criminals target human trust

AI-driven fraud is on the rise across Africa, according to Thalia Pillay, CEO of Orca Fraud, as reported by ITWeb TV. Pillay claims that criminals are utilizing increasingly sophisticated AI-backed tactics to bypass security controls. The financial technology company monitors over $5 billion in monthly transaction volumes, collaborating with major banks, telcos, and payment providers in 70 markets.

Pillay emphasizes that fraudsters, like start-ups, are agile and innovative, growing rapidly and leveraging advanced tools such as AI. One of the most concerning trends is the rise of highly convincing phishing scams, where punctuation and translation errors are no longer evident. Orca Fraud offers an AI-powered, real-time fraud orchestration and transaction monitoring platform for financial institutions.

Established in 2024, the company raised $2.35 million in a seed round in March to enhance its transaction monitoring and fraud intelligence capabilities across Africa and other emerging markets. Pillay highlights the highly localized nature of fraud in emerging markets, noting that it varies significantly between regions due to differing socio-economic conditions.

In Uganda, behavior may differ greatly from that in francophone markets or Nigeria. She advises financial institutions and technology leaders to enhance fraud prevention measures without sacrificing customer experience, cautioning that many banks focus on perimeter security, overlooking vulnerabilities throughout the user journey.

Pillay criticizes the emphasis on frictionless customer onboarding and know-your-customer processes, asserting that financial institutions lack automated transaction monitoring to continuously assess risk throughout the entire user journey.