"Deloitte Report: Rapid Increase in Financial Fraud and Accidents Due to AI Advancement"

Financial Fraud Losses Expected to Reach $40 Billion by 2027
AI Incidents and Controversies Rising, Annual Insurance Premiums Projected to Increase by 80%
Rapid Growth in In-App Payment Volume and New Opportunities

The Korea Deloitte Group, composed of Deloitte Anjin LLC and Deloitte Consulting Korea, released the "Deloitte Global Financial Services Industry Trends" report on the 19th, analyzing the rapidly changing trends in the global financial services market. This report comprehensively covers innovation cases faced by financial service leaders, the utilization of advanced technologies such as AI, and key strategies to strengthen resilience.

According to the report, cases of financial fraud using artificial intelligence (AI) technology have recently increased. For example, in January 2024, a company in Hong Kong was involved in an incident where $25 million was transferred using deepfake technology. The report forecasts that damages from generative AI-based financial fraud in the United States will grow from $12.3 billion in 2023 to $40 billion in 2027, an average annual increase of 32%. It emphasizes the need to strengthen fraud prevention strategies that combine advanced technology with human intuition.

Additionally, risks are increasing alongside AI advancements. According to a report from Stanford University, the number of AI-related incidents and controversies has increased by 2600% since 2012. However, this is expected to present opportunities for the insurance industry. By 2032, the total global insurance premiums for AI risk coverage are expected to reach $4.7 billion, with an average annual growth rate of 80%. Insurers need to enhance their expertise to respond to AI technology developments.

Social media platforms are transforming into digital spaces offering an end-to-end (E2E) shopping experience that includes purchasing and payment. The scale of in-app payments on U.S. social media is expected to increase from $19.1 billion in 2024 to $94.5 billion in 2030. Payment institutions are anticipated to create new opportunities by providing secure and convenient payment systems along with additional financial products.

Min Hong-gi, Head of the Financial Industry Integrated Services Group at Korea Deloitte Group, emphasized, “We hope this report provides important insights for proactive preparation regarding innovation, growth, and risks across the financial services sector.”