How KYC, AI and regulation shape the financial crime landscape in 2026

ChainWatcher · 2026-02-24T09:31:38+00:00

Financial institutions face escalating payment fraud threats due to AI's misuse by fraudsters. To combat this, they must adopt AI, adhere to regulations, and collaborate across the industry, emphasizing KYC for effective customer data management.

ChainWatcher

2026-02-24 09:31:38

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AI in the hands of fraudsters is becoming an increasingly sophisticated foe for financial institutions, with recent data finding that as many as four out of five companies have experienced payment fraud attacks in 2024. Going forward, financial institutions must not only keep up with these evolving threats but also anticipate and mitigate them effectively.

In order to keep up with the developments in financial crime, financial institutions need to embrace AI, keep up with regulatory frameworks, and make collaborative efforts with industry counterparts, regulators, and consulting firms in order to leverage wider data pools. KYC becomes crucial in this process, in order to ensure the right information is available from the start of the customer relationship.

**This report highlights the key takeaways of a Finextra webinar, hosted in association with NiCE Actimize, by a panel of industry experts. We discuss: **

*   _Fraud in the time of AI; _
*   _Organisational challenges and regulatory impact, and _
*   _How AI is being effectively deployed by banks. _

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