Payments Providers Confront AI-Driven Identity Fraud

Richard Swales, chief risk and compliance officer at Paysafe, warned in a "What’s Next in Payments" interview that generative AI is enabling synthetic identities and undermining traditional document and biometric onboarding. He said providers are shifting to behavioral intelligence—using device, login, geographic and transaction signals—and considering tokenization and cross-industry cooperation to detect agentic-AI threats while preserving transaction convenience.