Banks can’t fight AI fraud with yesterday’s rules

Banks have spent much of the past two years asking whether artificial intelligence should be viewed as an enhancement or a competitive differentiator.

Richard Bailey, Entersekt’s Chief Information Officer, believes the discussion should begin somewhere else entirely. He suggests that AI has progressed beyond the familiar “aspirin or vitamin” framework and is entering a third category: an antiviral that must adapt continuously as fraud mutates.

“In our world, for Entersekt, it’s fundamentally pain driven. Our customers are in pain, and they’re looking for the aspirin,” he told PYMNTS.

That pain extends beyond fraudulent transactions themselves. Bailey cited the growing difficulty of resolving disputed payments, onboarding customers securely and responding to attacks that change almost as quickly as institutions can defend against them.

The practical consequence is that buyers are no longer looking for AI because it sounds innovative. Instead, they want measurable improvements in authentication, fraud mitigation and customer experience.