AI Powered Financial Fraud Threats Are Outpacing Manual Defences
In the space of just a few years, artificial intelligence has transformed the way we work across industries – now a staple for so many seeking improved efficiencies and streamlined processes. However, this rapid development in technology comes with drawbacks, as financial fraudsters increasingly embrace it, placing immense pressure on Australian businesses’ defence systems, many of which simply aren’t ready for these upgraded threats.
The past year has seen a surge in both the volume and sophistication of fraud attempts targeting Australian organisations, powered by AI tools that make it easier, faster, and more convincing than ever for bad actors to manipulate business processes and people. The fraudsters have levelled up, and manual processes are no longer enough to keep them at bay.
The fraud landscape has changed
Basic protocols have, until recently, been all that many businesses needed to safeguard their operations, relying on manual processes such as dual approval or human review of bank details to catch suspicious transactions before money left the door. These defences are rapidly being rendered obsolete as AI continues to evolve.
From deepfake audio and video to generated emails and documentation, AI is enabling fraudsters to mimic real suppliers, colleagues, or executives with accuracy that has come leaps and bounds in recent years. The ability to automate these scams at scale means attacks are no longer rare or isolated events, and businesses must be on the front foot in protecting their operations.
We’re seeing growing cases of sophisticated payment redirection scams, invoice fraud, and business email compromise, where fraudsters infiltrate or spoof company communications to redirect legitimate payments to criminal-controlled bank accounts. With many businesses now relying on real-time payments, there’s no takeback once the money is gone.
Real-time payments = real-time fraud
The move towards faster, more seamless payment systems is great for efficiency, but it comes at a cost. With less time to detect and block suspicious payments, fraudsters are exploiting this speed to outpace traditional controls.
In particular, these criminals are taking advantage of internal gaps in process, anything from changes to supplier bank details or pressure on finance teams to process invoices quickly, they are able to insert themselves into legitimate payment flows. A single error, or a moment of inattention, can result in hundreds of thousands of dollars lost with no recourse.
Compounding the issue is the fact that many businesses still rely on spreadsheets, email trails or manual data entry to verify and manage payment information. These may have been adequate in the past, but these defences are simply archaic in the face of coordinated, AI-driven attacks.
Technology must be part of the defence
Organisations can no longer fight AI-enabled fraud with checklists and manual workflows alone. If fraudsters are using automation, businesses need to respond in kind.
This doesn’t mean a complete overhaul of entire finance systems, rather, uplifting them with purpose-built technology that can verify payment details in real time, flag suspicious changes, and provide a clear audit trail to support decision-making.
Using tools with continuous data validation and an independent network of verified supplier information catches inconsistencies before payments are made. That means even if a fraudster manages to insert a fraudulent invoice or change bank details, the system can detect the risk and stop the payment before it goes through, all without interrupting day-to-day workflows.
It’s not if, but when
No business is immune to this threat, from small businesses to ASX-listed companies, the attacks are happening across the board. Fraudsters often target busy finance teams, especially during hectic periods when tight deadlines stretch resources thin.
It’s more important than ever for businesses to move beyond reactive, manual approaches to fraud prevention. That means investing in real-time payment verification tools to validate bank account details before payments go out and training staff to spot red flags and unusual requests, especially changes to supplier details. Regularly auditing these systems is crucial to ensure nothing slips through the cracks, while technology should complement human skills to catch vulnerabilities early.
As AI continues to evolve, so too must our defences. No longer a job just for the IT or finance team, all aspects of a business should be rowing in the same direction and aware of their role in safeguarding their organisation. There’s never been a better time to review your business’s systems, every day you delay is another day you’re leaving the door wide open.
By David Higgins, CTO at Eftsure.
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