Banks Warn Of AI-Enabled Fraud Surge

Bank executives testified before the House Financial Services subcommittee on March 5 that financial fraud has grown more sophisticated, coordinated, and technologically enabled, increasingly leveraging AI and faster payment rails. Witnesses cited $12.5 billion in consumer fraud losses in 2024 and warned real-time settlement shortens intervention windows. They urged unified public-private information sharing, stronger consumer education, and regulatory coordination to improve detection and recovery.