Central Bank Warns of Rising Scams Fueled by AI and Emerging Technologies
Published: 27 Feb 2026
Author: Precedence Research
The Central Bank has warned that artificial intelligence (AI) and other emerging technologies are giving criminals new and more sophisticated tools to target consumers. The growing accessibility of generative AI is increasing the scale, speed, and realism of scams, making fraud harder to detect.
According to the bank’s Regulatory & Supervisory Outlook, affordable and widely available digital tools, combined with the rapid shift toward online financial services, are making it easier for criminals to carry out fraudulent activities. By early last year, AI-assisted phishing reportedly accounted for more than 80% of global phishing attacks, despite the technology still being relatively new.
While AI can support efforts to combat financial crime, the Central Bank emphasized that the risks are significant. It stressed that protecting consumers and safeguarding the integrity of the financial system must remain a top priority. The broader report also outlines key risks facing the financial sector, including IT resilience, outsourcing challenges, economic uncertainty, and shifting global trade dynamics.
In response to rising scams and fraud, the Central Bank said it will assess fraud controls at regulated firms, including banks and payment providers, focusing on incident response and customer protection. The report stressed that safeguarding consumers and the integrity of the financial system must be a priority for all firms and agencies.
The regulator also highlighted efforts to pressure social media platforms to remove scam ads and raise awareness of threats. With its “trusted flagger” status under the EU Digital Services Act, complaints it flags must be prioritized by online platforms. While new technologies, including crypto, increase fraud risks, the report warned that scams and financial crime are worsening alongside technological advances and their adoption.
The report warned that new technologies, such as cryptocurrency, increase the risk of fraud and financial crime and could eventually pose broader financial stability risks as they become more integral to the financial system. While advanced AI tools can boost productivity, investment performance, and risk management for financial firms, they also carry vulnerabilities from bias, misinformation, data loss, and lack of transparency, requiring careful oversight.
The Central Bank noted that ongoing digitalization and evolving consumer expectations are transforming financial products, offering both opportunities and challenges. Innovations like tokenization and stablecoins can enhance operational efficiency and improve financial offerings, but they also introduce new risks and raise environmental concerns that must be managed.