Emerging risks: AI and the expanding regulatory perimeter
Fraud will continue to evolve – firms need a proactive approach to fraud detection and risk management.
Panellists:
- Valentin Vincendon, Head of Product, BCB Group
- Charlotte Baker, CCO & MLRO, Bitstamp UK
- Rupert Poland, Head of EMEA Digital Asset Practice, Aon
- Moderator: Liz Pfeuti, Rhotic Media
It’s crucial that firms move fast to find efficient ways to respond to increasingly sophisticated threats in the evolving risk landscape. Our final panel of the day at BLINC LIVE! examined the accelerating impact of artificial intelligence on fraud risk, and the expanding regulatory perimeter surrounding financial services, particularly in the crypto sector.
Panellists discussed how fraud has evolved into a professionalised industry, operating with defined investment strategies, performance metrics and clear return-on-investment models. The importance of embedding a regulatory-first approach in organisational culture, beyond just compliance, was a key theme.
One panellist noted that criminal networks now deploy AI as a core business tool, enabling them to scale impersonation scams, synthetic identity fraud and social engineering attacks with alarming precision. In the crypto sector alone, an estimated $17 billion was lost last year, much of it linked to AI-enabled scams.
Nonetheless, there was broad agreement that AI has materially lowered the cost and increased the speed of executing fraud. Panellists discussed the importance of public-private collaboration in combating fraud, with a focus on sharing data and driving innovation.
Panellists also examined vulnerabilities in onboarding processes, including reliance on third-party identity verification tools and the risks posed by human overrides. The use of deepfake technology in recruitment and infiltration attempts was mentioned as an emerging concern, and there was consensus that firms must assume threat actors will continue to innovate faster than regulation can respond.
Meanwhile, from an insurance perspective, the panel explored whether such risks remain insurable. One panellist said that while losses are not universal and risk remains localised, the frequency and severity of events are rising, creating pricing and modelling challenges that require clear articulation of governance frameworks and control environments.
The regulatory outlook featured prominently. Panellists discussed how UK crypto regulation will tighten, expanding consumer protection and duty obligations. With many fraud victims over 60, firms must show fair treatment and clear disclosure. There was broad agreement that compliance should not be treated as a cost centre but as a revenue protector and strategic function embedded across the organisation.
The session concluded with a forward-looking focus. Panellists discussed the need to “fight AI with AI,” leveraging machine learning to detect anomalies and strengthen resilience. Ultimately, there was consensus that fraud prevention is now an enterprise-wide responsibility requiring coordinated industry collaboration, proactive engagement with regulators and sustained investment in adaptive controls.
