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As AI technology advances, it also presents new challenges. Online payment fraud is on the rise, with estimates suggesting it could cost $362 billion by 2028. This increase partly stems from criminals utilizing AI to execute sophisticated scams. A notorious incident in Hong Kong this year involved a finance worker who was deceived by a deepfake video, resulting in a $25 million loss to scammers.
Such techniques underline the potential risks associated with AI, prompting officials to voice concerns about its impact on the financial system. Treasury Secretary Janet Yellen has noted that while AI presents numerous benefits, it also introduces new vulnerabilities that need careful management.