6 Key Frauds, KYC, And Anti-Money Laundering Predictions For 2024: An Analysis By Trustt

With the increasing advancement in the financial industry, it is observed that frauds are increasing at a faster rate. Most of these frauds are either the result of loopholes in the security system or the deep use of the same technology that was meant to benefit humankind. One of them is application push payment (APP), where fraudsters make use of this application process to trick the consumer into making false payments. 

Not only this but there is a significant increase in first-party fraud, which means that the consumer is itself involved in the fraud by giving false information to earn the credits or the services. This is what is termed the ‘fraud of need’ instead of the ‘fraud of greed.’ All this together gave rise to various frauds and phishing methods. Let us take this blog to explore what lies ahead for the fintech industry involving fraud, KYC, and AML. 

6 predictions for the year 2024

  1. The emergence of "FRAML": fraud and anti-money laundering defenses coming together. For many years, AML and fraud teams worked independently, focusing on different facets of financial crime. But in 2024, there will be a big move toward FRAML (Fraud and AML), a single strategy that combines data, analytics, and tools to fight crime more successfully. The following factors propel this convergence:
  • Increasing complexity of fraud: Money is not only being stolen by fraudsters anymore; they are also laundering it. Conventional fraud detection methods may overlook financial strategies intended to conceal the source of cash.
  • Regulatory focus on convergence: Aware of the connections between money laundering and fraud, regulators throughout the world are pushing institutions to take a comprehensive approach to preventing financial crime.
  1. "Deepfakes" and AI-powered digital identity theft: recall the spookily lifelike deepfake videos featuring Tom Cruise? Anticipate the exploitation of such technology as a weapon for advanced digital identity theft by 2024. The latest artificial intelligence (AI) technology will be used by fraudsters to generate incredibly realistic fake identities, complete with falsified paperwork, voice recordings, and even edited video testimonies. This will require:
  • Advanced biometric authentication: Institutions will depend more and more on dynamic biometrics, such as voice, behavior, and iris recognition, in addition to static data, to confirm user identity.
  • Multi-layer AI defense: Deepfakes and other AI-powered attacks will require the detection of sophisticated AI models that have been trained on enormous datasets of authentic and fraudulent activity.
  1. A change in strategy with plastic "money mules": Stricter regulations on bank accounts mean that thieves would probably resort to using plastic money, or credit cards, for money mulling, a scheme in which they deceive unsuspecting people into sending money that has been stolen. We can expect:
  • Increased inspection of high-value transactions: In order to prevent money laundering operations, card issuers will report odd credit card activity, such as unexpected payments to unidentified parties.
  • Cooperation across industries: To exchange intelligence and monitor money mule activities on various platforms, financial institutions, card networks, and law enforcement will probably work together.
  1. Increasing security beyond high-risk transactions: KYC goes retail. KYC checks were previously only performed on high-value transactions or in sectors of the economy where money laundering was common. Nonetheless, KYC may become standard in retail transactions by 2024 due to the following reasons:
  • Regulatory push: Stricter KYC rules across all industries, even for lower-value transactions, are being pushed for by regulators globally.
  • Changing fraud landscape: Since fraudsters prey on routine transactions, it is important to protect consumers by discouraging fraudulent conduct and mandating basic KYC verification, such as ID checks.
  1. Identity verification is revolutionized by open banking: Open banking presents a fantastic chance to improve and expedite identity verification by enabling safe data exchanges between institutions. Anticipate to observe:
  • Enhanced efficiency: By allowing access to their validated financial information from other establishments, customers can do away with the necessity for repeated KYC checks.
  • Enhanced risk assessment: Organizations can obtain a more complete understanding of consumer behavior and risk exposure with the help of better data insights.
  1. New fraud frontiers come out with the APP laws: The growing global presence of Accountable Platforms Payment (APP) laws seeks to make payment platforms more liable in the fight against cybercrime. But this could unintentionally result in:
  • Unintentional repercussions: Fraudsters may modify their strategies in order to take advantage of gaps in the way that various jurisdictions implement the APP.
  • Working together is essential: Payment networks and international regulatory agencies must work together to guarantee the uniform and efficient application of APP laws.


These forecasts provide a dynamic picture of the fight against financial crime that will continue beyond 2024. Although there are many obstacles to overcome, there are also many chances for creativity and teamwork. We can build a safer and more welcoming financial ecosystem for everybody by utilizing cutting-edge technology, encouraging regulatory harmonization, and placing a high priority on the user experience.

Trustt is one such platform that adheres to regulatory compliance and offers you a seamless experience with your onboarding requirements, e-KYC, and other core banking platforms.