Digital Fraud: Strategic Preparedness in the Age of Technological Crime

Season 6 Episode 12

Transcript

Juan José Ríos (Host):

We live in an era where technology advances faster than our ability to understand it. An era where money moves in milliseconds and a single wrong decision can cost millions. And the most dangerous thing is that today's criminals no longer need to physically break into an institution; they just need to break into a person's mind and behavior.

Welcome to Mundo Financiero Seguro, the Plus TI podcast.
I'm Juan José Ríos, and it's a pleasure to accompany you in this space where we analyze, discuss, and understand the dynamics of digital fraud and financial crime prevention in our region.

The question is no longer whether there will be fraud.
The question is: will we be prepared when it happens?

In Latin America, the numbers speak for themselves. The digital wallet market will reach $95 billion by 2025. Similarly, 75% of digital payment fraud comes from mobile devices. In addition, digital fraud in the region grew by 70% in 2023, driven by transfers and user manipulation.

Fraud is already here.
And the real challenge is not to prevent it, but to anticipate, detect, and contain it in time.

In this episode, I am joined by two key voices: Douglas Puga, banking expert in operational fraud management, and Martha Leuro, international strategic consultant in digital fraud prevention.

Douglas Puga:
Nice to meet you, good morning. Douglas Puga here. Thank you for inviting me, and we're here at your service.

Martha Leuro:
Hello, good morning, Juan José and Douglas. I am delighted to share these experiences with you and with everyone listening to this podcast.

Juan José Ríos:
Douglas, I want to start with you because what we are seeing today in the region is a profound change. We are no longer just talking about card fraud. Now it is skyrocketing in digital wallets, instant transfers, mobile banking, and even onboarding processes. From your experience, what would you say are the most critical threats hitting digital banking today?

Douglas Puga:
That's right, Juan José. There are several fronts, but we can focus on three main ones.
First, fraud in instant transfers and P2P payments, where the criminal manipulates the customer into authorizing transactions. Second, fraud in onboarding, through the theft or misappropriation of credentials, which pass traditional validations and remain invisible until the fraud is activated. And third, account takeover, where the criminal controls the mobile app and executes transactions in a matter of seconds.

On most of these fronts, the weakest link in the chain remains the user. It is the user themselves who activates applications, grants permissions, or takes certain steps that allow fraud to occur. In an account takeover, for example, it takes more than a single click to compromise a device; there are multiple methods for perpetrating these attacks.

What all these cases have in common is speed. There is a direct correlation: the longer it takes us to detect and contain fraud, the greater the losses will be. This happens in seconds, and organizations must respond just as quickly. The attacker has time; institutions do not. That difference is key between an immediate reaction and a significant loss that affects both the organization and the customer.

Juan José Ríos:
Interesting, Douglas. Marta, from your global perspective, what signs confirm that fraud is no longer just a technological risk, but a business risk?

Martha Leuro:
According to Douglas, the speed and severity with which fraud is occurring is forcing organizations to change their stance. On the one hand, we are seeing increasingly sophisticated attacks driven by artificial intelligence. Attackers no longer use simple schemes; they have professionalized, industrialized, and automated fraud.

This challenges traditional controls and adds to the quantitative and qualitative growth of digital fraud across all segments. Today, 75% of digital fraud originates from mobile devices, and a significant portion of digital wallets are compromised by manipulation and impersonation. In addition, deepfake-based attacks have grown by more than 2,000% in the last three years.

We are no longer talking about isolated losses. Fraud has become a reputational and strategic threat. It is no longer an operational problem but a business risk. Those who define their prevention strategy are the ones who retain their customers' trust and remain in the market.

Juan José Ríos:
Douglas, considering that organized crime now uses artificial intelligence and automation, how are they exploiting these technologies to compromise digital channels?

Douglas Puga:
Attackers no longer operate in a traditional manner. Fraud is now completely industrialized and automated. They use deepfakes to bypass video validations, bots that test thousands of credentials per second, and highly personalized social engineering schemes.

The attacker knows the customer: their habits, tastes, and behaviors. This allows them to emotionally manipulate the user. In addition, there are ready-to-use fraud-as-a-service platforms, which lower the barrier to entry for committing fraud.

The critical point remains the same: the user. Many customers trust calls or messages that appear to come from legitimate entities, providing information or activating functions on their devices. Once the attacker takes control, it is extremely difficult for the bank to detect the fraud, because the attack occurs through the customer's own behavior.

Juan José Ríos:
Marta, given all this context, what does it really mean to be prepared?

Martha Leuro:
Being prepared means striking a balance between technology, processes, and people. We're not just talking about internal teams, but also customers, who are now a fundamental part of the equation.

The best technology fails without culture, and the best culture fails without smart technology. Being prepared means anticipating, not reacting after fraud has occurred. It means integrating identity, devices, behavior, and transactional context to make decisions in real time.

Today, it is no longer enough to adjust rules manually. Learning must be automatic and happen in milliseconds. A prepared organization does not react: it anticipates, integrates, learns, evolves, and protects its environment. That is leading with strategy and vision.

Juan José Ríos:
How are modalities such as synthetic identities or hybrid fraud redefining the current landscape?

Martha Leuro:
It is not just an increase in volume, but a complete reconfiguration of risk. We have moved from operational risk to systemic risk that compromises business continuity, reputation, and trust.

Fraud can now occur at any point in the customer cycle: onboarding, identity verification, or transaction. This requires comprehensive protection, a 360° view, and a unified defense architecture. The risk is no longer just to one entity, but to the entire financial ecosystem.

Douglas Puga:
Strategic alignment and a culture of prevention are essential. There are no isolated areas of fraud; there must be integration with cybersecurity, operational risk, and other actors in the ecosystem. Technology is key, but it is people who make it effective.

Fraud grows exponentially, not linearly. That is why we must rely on artificial intelligence, real-time monitoring, and continuous learning. It is also essential to share experiences, learn from other markets, and not reinvent solutions that have already proven their effectiveness.

Martha Leuro:
We must break down organizational and intersectoral silos. Security is everyone's responsibility: institutions, customers, and ecosystem players. Being prepared is not just about having tools, but about anticipating, integrating, and working together to protect confidence in the financial system.

Juan José Ríos:
Today we understood that digital fraud is not a technological incident; it is a strategic battle for trust. It is not the one who avoids attacks the most who wins, but the one who is prepared to face them.

The question is not whether there will be fraud.
The real question is: are we reacting or anticipating?

Because in the end, the real battle is not only against fraud, but also about preparedness.

I am Juan José Ríos. Thank you, Douglas. Thank you, Marta, for sharing your experience and vision. And thank you all for listening and dedicating your time to an issue that is so critical for our region.

We'll see you in the next episode of Mundo Financiero Seguro, the Plus TI podcast.
See you soon.