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When bots break the rules: How banks can safely harness AI for growth

Fraud prevention Security Technology
AI agents are evolving fast. Some are now even bypassing long-standing security measures like “I am not a robot” checks. For financial institutions (FIs), this raises urgent questions: Could the adoption of the latest AI tools, like AI agents — that are potential levers for improving operational efficiency and supporting growth — also introduce new security risks?

The challenge lies in harnessing these advances safely so that banks can balance growth and efficiency with effective fraud prevention, says Frank Moreno, Chief Marketing Officer at financial authentication company, Entersekt.

AI agents in digital banking: Opportunities to innovate and streamline operations

Leveraging AI-driven automation can be beneficial for banks by enhancing their services, improving efficiency, and helping them remain competitive. Wells Fargo, for instance, is rolling out AI agents across the bank’s departments, from call centers to internal operations, and corporate banking.

According to PYMNTS, the bank will use the new technology to “to automate tasks, analyze internal data, and provide real-time customer service and market insights, with use cases ranging from document search to personalized client interactions.”

But not all FI leaders feel as confident about the widespread adoption of AI agents.

When innovation meets banking fraud risk

While the adoption of generative AI tools is scaling quickly, there is considerably more hesitation among decision makers regarding the leap to AI agents. PYMNTS reports that as few as 15% feel confident to deploy this advanced AI technology.
The recent and widely reported scenario of OpenAI’s ChatGPT agent passing a long-standing “I am not a robot” check could be the tip of the iceberg regarding the dual use of AI technology — and the emerging banking security and fraud risks.
With AI agents typically having free reign to perform tasks without human supervision, banks need a risk management strategy in place to monitor emerging security risks.

The potential impact of AI-enhanced banking fraud
Fraud-related risk Potential impact on banks
AI-driven credential stuffing and bot attacks Account takeover at scale, massive fraud losses
Deepfake identity fraud Account takeover at scale, massive fraud losses
Synthetic fraud using AI-generated personas Fraud losses, reputational damage
Session hijacking by AI agents Real-time theft from customer accounts, reputational damage
Phishing-as-a-service powered by AI Higher success rate of scams, more customers defrauded
AI bypassing legacy CAPTCHAs and device checks Fraudsters blend in with legitimate users, authentication gaps exploited
Adversarial attacks on fraud detection models Fraud signals suppressed or misclassified, detection failures
Automated social engineering at scale Customers tricked into authorizing fraudulent transactions

To reduce additional fraud risk, FI leaders should ensure their teams utilize modern fraud prevention tools that share intelligence across all banking channels to build dynamic, context-rich authentication mechanisms.

Mitigating new AI-driven fraud threats with dynamic authentication

As AI agents evolve, they could introduce unintentional risks, such as data exposure and weak access control in a bank’s operational workflows. But also intentional fraud risks, such as deepfake account takeovers and automated phishing scams.
The underlying issue here is that traditional fraud defenses can no longer counter these adaptive, human-like systems.
Modern authentication is key for FIs wanting to gain more control. With a dynamic, risk-based authentication approach, FIs can stay ahead of AI-powered fraud, like one-time passcode (OTP) bots (an automated fraud tool that tricks users into revealing their OTP ahead of a potential account takeover), without creating unnecessary friction for legitimate users. Ideally, prioritize a provider, like Entersekt, that incorporates:
  • Context-based authentication: Detects anomalies in user behavior, device signals, and transaction patterns that AI agents struggle to perfectly mimic, preventing account takeovers and automated attacks.
  • Real-time risk intelligence: Continuously evaluates risk signals, including emerging AI-automated scams, to adapt defenses instantly and stop novel fraud vectors before they scale.
  • Cross-channel authentication: Ensures that a customer’s identity is verified consistently across all bank channels, making it harder for AI agents to exploit channel silos.
  • Silent authentication: Provides frictionless verification in the background, reducing reliance on static challenges (like CAPTCHAs or OTPs) that AI agents can now bypass.
  • Biometric authentication: Replaces weak passwords and OTPs with secure, biometrics across channels, reducing exposure to OTP bot attacks and automated fraud.
Banks and credit unions working with a trusted fraud prevention partner can protect their customers and members without burdening them with extra, invasive authentication steps.

Protecting banks and their customers with real-time fraud risk detection

With Entersekt, FIs can implement advanced authentication and real-time risk detection, enabling them to safely adopt new technologies while safeguarding customers and maintaining their trust.

Banking leaders can help their institutions get ahead of evolving threats with Entersekt’s innovative authentication approach:
Adaptive AI defenses: By continuously learning from live transaction patterns, banks can flag and stop anomalies in real time — catching fraud that static rules or outdated systems miss.

Stronger authentication: Moving beyond passwords with layered biometrics and device-based verification drastically reduces account takeovers and blocks attackers from exploiting weak login processes.

Shared fraud intelligence: Collaborating with other FIs, and the broader banking and payments ecosystem, creates a unified defense network, helping banks respond to new fraud campaigns before they scale.
Learn more about protecting your customers and your brand’s reputation with Entersekt’s holistic approach to scam and fraud prevention at www.entersekt.com.