Artificial Intelligence Will Become A Major Headache For Payments Companies

February 28, 2024

Artificial Intelligence (AI) has been a hot topic this year: from script writing, image generation, and countless other uses, AI has unlimited potential… and this applies to fraud as well.

According to Managing Editor at Payments Cards and Mobile, James Wood, the advent of generative AI is going to be a“major security headache for payments companies”.

Readers will surely remember the cyberattack on the MGM Grand casino in Las Vegas, which resulted in a complete shut down for almost a whole business week, and costing millions of dollars in costs both from repairs and lost revenue. And this is not set to be an isolated incident. It is estimated by Lloyds of London that, should a cyberattack on a global pay,Mets system be successful, it could cause a $3.5 trillion hit to the world’s GDP.

Let’s remember scammers, fraudsters and hackers not only focus on global or big corporations: for a small or medium business, one cyberattack could drive them to go under… and it is estimated that around half of all businesses in the UK fall under this category.

Comparing this year to last year, cyberattacks are up 10%, and according to CheckPoint Research, at the highest level ever recorded.

Payments Cards and Mobile highlights the key risks to look out for next year.

As AI evolves, so do the strategies of criminals. And as more regulations prevent legitimate companies from using it in certain ways, criminals do not follow the same rules. AI software such as ChatGPT can be used to enhance the believability of criminals’ fake identities and profiles, making it easier to sneak into company systems.

“Expect criminals to use generative AI and GPU farming to create higher volumes of harder-to-detect fake customer profiles.

An excerpt from the original article details GPU farming:

“GPU farming” means setting very specific tasks to a series of networked computers to enable data calculations to be completed more efficiently. Expect criminals to combine GPU farming with generative AI software to create fake user profiles more effectively than ever before – and more rapidly. To counteract this, companies need to do more to protect their data, as well as keeping it as “clean and up to date as possible”.

It is also imperative for senior levels at any organization to recognize the risk, and understand that security teams will be overwhelmed. This means security leadership needs to be involved in business-decision making.

The Risks And How To Fight Back

It is also imperative for senior levels at any organization to recognize the risk, and understand that security teams will be overwhelmed. This means security leadership needs to be involved in business-decision making.

The “cloud” is recognized as one of the biggest systems risks by two-thirds of Chief Information Officer (CIOs), according to Forrester and Tenable.

The highest risk is the use of public cloud infrastructure (31%), multi-cloud or hybrid cloud (27%) and private cloud (9%), and we can expect trouble as ONLY three in ten companies are using private cloud arrangements.

To counteract this, all data stored on any cloud service should be encrypted, and making sure that only certain roles can access this data, as well as requiring multiple factor authentication, such as biometric data.

“At present, just 5% of company files stored on the cloud are protected in any way, according to banking services firm BaaS Business Solutions – with cyberattacks occurring every 24 seconds, this is a recipe for disaster.”

According to tracking by SonicWall Capture Labs , last year alone, malware attacks went up a whopping 87% – and European countries were in the global top ten for these attacks.

“Malware works by gaining access to a poorly-protected device, then using that device to launch malicious attacks on a wider system(…)An example would be malware on a personal smartphone accessing company email or data systems and preventing use of those systems in a technique known as Direct Denial of Service (DdoS).”

To counteract, strengthening protection on personal devices is imperative, as well as limiting access to company data via personal devices.

A smart organization will issue staff with encrypted devices for company use only.


Yes, AI could be used for good in the sector, but the damage it could do in the wrong hands is potentially devastating. But a little common sense, attention and thinking can help toward solving many of these exposure points. Payments firms need to be prepared to face the threat of generative AI and GPU farming. 

Want to learn more? Check out Payments Cards and Mobile’s full write-up here.

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