SET Training - Banking and Fintech

How Artificial Intelligence is Reshaping the Landscape of Job Fraud and Corporate Espionage By Stanley Epstein Introduction In the ever-evolving landscape of cybersecurity threats, a new and particularly insidious danger has emerged: the use of artificial intelligence (AI) to impersonate job candidates. This cutting-edge form of deception, utilizing deepfake technology, represents a significant escalation in the ongoing battle between cybercriminals and security professionals. As organizations grapple with this new threat, the very nature of hiring processes and corporate security is being called into question, forcing companies to adapt rapidly or risk falling victim to this high-tech fraud. The implications of this trend extend far beyond simple identity theft or financial fraud. By gaining access to sensitive corporate information through falsified job applications, cybercriminals can potentially inflict devastating damage on organizations, ranging from intellectual property theft ...

Strategies for Risk Professionals to Navigate an Uncertain Global Landscape Introduction In an era of unprecedented global change, the convergence of political, economic, and social dynamics has given rise to new challenges for businesses across the globe. Geopolitical risks, once considered peripheral concerns, are now central to corporate strategy and risk management. Companies, regardless of size or industry, must navigate a complex and often volatile geopolitical environment. Whether it's trade wars, sanctions, political instability, or climate change, the ripple effects of these global events can significantly impact operations, supply chains, and profitability. Mastering geopolitical risk management is crucial for professionals tasked with safeguarding organizational assets and ensuring long-term stability. This article offers an in-depth exploration of how risk professionals can identify, evaluate, and mitigate geopolitical risks. Through the use of theoretical frameworks a...

How PwC, Deloitte, EY, and KPMG Have Struggled with Scandals, Expansion, and Oversight Failures Introduction Auditors play an essential role in the global financial system, ensuring that corporations adhere to regulations and maintain transparent, trustworthy financial records. For decades, the world’s biggest audit firms—PricewaterhouseCoopers (PwC), Deloitte, Ernst & Young (EY), and KPMG—have stood at the forefront of this industry. However, in recent years, these giants have been marred by scandals, fines, and widespread accusations of malpractice. Once trusted pillars of the corporate world, they are now often in the headlines for failing to detect or even condoning fraud. This article explores the factors behind the growing number of scandals in the audit industry. It looks at how expansion pressures, internal conflicts, and regulatory hurdles have eroded the reputation of the once-revered Big Four firms. Ultimately, the narrative reveals how these massive organizations have ...

Project Nexus aims to connect domestic instant payment systems to improve the speed, cost, transparency of and access to cross-border payments. The BIS Innovation Hub is now working with the central banks of India, Malaysia, the Philippines, Singapore and Thailand as they work towards live implementation of Nexus

Despite massive investments and hype, AI hasn't yet delivered on its promised transformative impact. Experts believe it will take much longer than expected to see significant changes in daily life and the economy. Key issues: Overhyped Expectations Massive investments: Tech giants and startups are pouring billions into AI research, development, and infrastructure. This includes acquiring AI startups, building specialized AI chips, and constructing massive data centers. Inflated valuations: The stock market has rewarded companies that integrate AI into their business plans, leading to inflated valuations and a fear of missing out (FOMO) among investors. Unrealistic timelines: There's a tendency to overestimate the speed at which AI will revolutionize industries and daily life, leading to unrealistic expectations about its near-term impact. Limited Practical Applications Narrow intelligence: While AI excels at specific tasks like image recognition and language translation, it...

The Financial Action Task Force (FATF), originally created to combat money laundering, has been increasingly weaponized by authoritarian regimes to silence dissent and suppress opposition. By exploiting the vaguely worded FATF standards, autocrats can freeze assets, harass activists, and even imprison critics under the guise of fighting financial crime. Key tactics employed by these regimes include: Data collection: Governments amass financial information on citizens and opposition figures, often using it to build cases against them. Asset freezing: Banks, fearing repercussions, comply with government requests to freeze accounts, leaving individuals financially crippled. Politically motivated arrests: Critics are detained on spurious financial crime charges, with lengthy pre-trial detentions becoming commonplace. Targeting exiles: Authoritarian states collaborate to pressure Western countries into freezing assets and extraditing dissidents living abroad. While the FATF has made eff...

Artificial intelligence (AI) is transforming the banking industry, not just in customer-facing applications but also behind the scenes in operational risk management. While traditional methods focus on compliance and rule-based systems, AI offers a new frontier for proactive risk mitigation and intelligent response. This article explores five unconventional approaches that leverage AI's power to create a more dynamic and comprehensive risk management strategy: 1. The Conversational Comrade: AI Chatbots for Incident Response Imagine a tireless assistant, always available to guide staff through the initial stages of a security incident. AI-powered chatbots can be trained on historical data, regulations, and best practices to become valuable assets during critical moments. These chatbots can triage incoming reports, categorize them by severity, and offer step-by-step guidance on initial response protocols. Furthermore, they can facilitate root cause analysis by asking focused question...