Consider Ciara, age 82, who lives in a very small village in County Clare. She is as beautiful and awful as ever, and she continues to relate the ancient tales, those of the Sidhe, and of the impish Púca. Lately, a new kind of trickster has entered her life, one far more insidious than any fairy tale creature: AI-powered fraud. She lost her life savings to a scam that was pretty much her grandson asking for help. The voice, the inflection – perfect. It was a deepfake, a digital doppelganger created to take advantage of her affection and loyalty. It’s not only because it’s financial, but because they’re breaking that basic trust that holds our communities together.

Are We Leaving The Vulnerable Behind?

TELUS Digital’s partnership with Sumsub, purportedly offering improved identity verification and fraud prevention, looks impressive on paper. Quicker onboarding, easier compliance, better fraud detection – nobody would say no to these. What about Ciara? What of the millions more who are not digitally native, who have trouble with smartphones and online banking. Are we creating a system that shields certain groups, while unknowingly excluding, or even penalizing, others?

The Everest Group report forecasts a booming market for digital identity solutions by 2025. This forecast paints a picture of our world where digital identity is front and center. That future holds the possibility of leaving a large share of Americans in the dust. Having the tech isn’t enough. People need to know how to use it, how to protect themselves, and what to do when things go wrong.

We’re led to believe these tools are capable of flagging forged documents and suspicious geolocation data. Excellent! However, AI scams are moving even quicker than the technology created to fight them. The truth is that a motivated fraudster can get around most of these protections. The deeper issue isn’t technological, it’s societal. It’s these three things — isolation, lack of financial literacy, and the erosion of trust.

Consider this unexpected connection: In Irish folklore, certain plants and rituals are believed to ward off evil spirits. What are the modern-day equivalents? Is it firewalls and biometric authentication? Or is it more basic, such as community support networks and easily accessible financial education?

Tech Alone Won't Solve This Problem

Scammers have taken over the news cycle with stories and stats of ever-increasing fraud. As highlighted in Sumsub’s Identity Fraud Report 2024, 67% of companies are seeing more fraud. As a result, businesses are out an average of $300,000 per occurrence. These stats are really scary and it’s understandable that TELUS Digital moved into trust & safety solutions. Monty Hamilton, CEO of MOXIE, underscores the need for seamless, secure onboarding. With Andrew Sever, CEO of Sumsub, to discuss how organizations can achieve greater compliance and minimize their fraud risk.

Let's be honest: Technology is a double-edged sword. AI is as likely to commit fraud as it is to detect it. Putting all of your efforts into digital solutions is like trying to build a castle with just one wall.

We need a multi-faceted approach. How about a nationwide government-funded digital literacy program designed with special attention to the unique needs of seniors? What about mandatory financial education in schools? What’s wrong with banks assuming a greater burden by actively requiring them to educate consumers on common scams and fraud?

This isn't about being anti-technology. It's about being realistic. It’s the latter—about acknowledging that technology can be a powerful tool, but it isn’t a magic solution.

Protecting The Heart Of Our Communities

The emergence of AI frauds represents a risk to social fabric as well as a financial threat. In short, it erodes trust, isolates vulnerable individuals and preys on their fears. Each one of those people is a statistic. Consider the impact on someone like Ciara, whose life has been permanently altered.

We should be asking more of our banks, and we should be asking more of our federal government. To help prevent future tragedies, we need to invest in community-based programs that combat social isolation and promote digital literacy. To combat these injustices, we must create a culture of awareness and advocacy, where older adults are empowered to report scams and get the support they need.

And this isn’t simply about protecting our money—it’s about protecting the heart of our communities. It’s about making sure that everyone stays connected in the digital age. Let’s make sure AI fraud isn’t the new Banshee. We should not let it lament a world in which robotics and AI take precedence over people.