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10 Manipulative AI Tactics in Bank Hacking

Artificial Intelligence (AI) has brought transformative changes across various sectors, banking being a prime example. Not only has AI streamlined processes, but it has also improved decision-making, risk assessment, and customer interaction in banking. But alongside these advantages, new problems have arisen. The exploitation of deceptive AI by cybercriminals to orchestrate fraudulent acts is a growing issue in banking.

Banks in the UK are calling on technology firms to help cover the financial losses resulting from fraudulent AI activities. There has been a marked rise in the number of banking customers falling prey to AI fraud, where criminals use deceptive tactics and false identities to trick customers into transferring money from their accounts.

This article offers an in-depth understanding of deceptive AI, its operation, and ten strategies that criminals use to abuse AI in banking.

Understanding Manipulative AI

Manipulative AI (a.k.a. Deceptive AI) is the malevolent use of AI technologies with the aim to mislead, take advantage of, or harm others. It works by identifying and abusing weaknesses in AI systems or utilizing them in ways they were not designed for. In banking, this could involve using AI to execute intricate fraud schemes, impersonate individuals, or evade security systems.

The Functioning of Deceptive AI

Deceptive AI employs sophisticated machine learning algorithms and deep learning methods to replicate human behavior, generate false personas, produce synthetic data, or crack security systems. Cybercriminals alter AI models during their training or application phase, resulting in skewed outcomes. They can also use AI to systematize their fraudulent activities, making them harder to detect and counteract.

Ten Deceptive AI Strategies in Banking

(1) AI-Driven Phishing Attacks: Criminals utilize AI to automate and perfect phishing attacks. AI can create convincing counterfeit emails and websites, customize messages to appear genuine, and pinpoint potential victims.

(2) Identity Theft: Leveraging deepfake technology, criminals can generate synthetic audio and video of individuals that appear incredibly realistic. These can be used to mimic bank customers or officials, tricking victims into divulging confidential information.

(3) Data Manipulation: By tampering with the data used to train AI models, criminals can lead them to make inaccurate decisions. They could, for example, manipulate credit scoring models to greenlight loans for fraudulent borrowers.

(4) Algorithm Poisoning: This method involves feeding misleading data to an AI system to modify its behavior. A fraud detection system could be taught to disregard certain categories of fraudulent transactions.

(5) Automated Hacking: AI can be used to systematize hacking activities, making them quicker and more efficient. This encompasses activities like password cracking, network intrusions, and vulnerability scanning.

(6) Exploiting AI Biases: If AI systems have inherent biases in their algorithms, criminals can turn these biases to their advantage. For example, a biased fraud detection system might overlook certain demographic groups, making them perfect targets for fraud.

(7) AI-Enabled Malware: AI can be used to develop smarter malware that can adapt to its environment, avoid detection, and exploit vulnerabilities in banking systems more effectively.

(8) Bypassing CAPTCHA: AI models can be trained to solve CAPTCHA challenges, enabling bots to sidestep security measures and gain access to banking systems.

(9) Evasion of Fraud Detection Systems: By understanding the workings of an AI-based fraud detection system, criminals can tailor their fraudulent activities to escape detection.

(10) Misinformation and Disinformation: AI can produce fake news or misinformation to incite panic or confusion, leading to market manipulation and financial benefit.


The rising threat of deceptive AI in banking demands urgent consideration. As we increasingly rely on AI for crucial decisions and procedures, it's vital to be aware of the potential risks and ensure the implementation of strong security safeguards to defend against these advanced threats. The battle against deceptive AI will require a persistent, collective effort from AI researchers, cybersecurity specialists, and regulatory authorities.

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