AI technology fuels rise in illegal financial fraud

The digital transformation of the financial sector has increased access to payments, financing, and investments, but it has also created new vulnerabilities. Criminals are increasingly utilizing artificial intelligence (AI) to strengthen illegal financial fraud schemes.

By leveraging AI, perpetrators can create highly convincing fake identities, mimic official institutional communications, and design narratives that are difficult for individuals with low digital and financial literacy to detect. Dicky Kartikoyono, Executive Head of Business Actor Conduct Oversight, Education, and Consumer Protection at the Otoritas Jasa Keuangan (OJK), noted that online scams are now deeply intertwined with illegal financial activities and money laundering. This evolution requires a rapid, integrated response based on financial intelligence rather than treating online scams as isolated crimes.