When AI meets fraud: why banks need real-time decisioning and industry collaboration
MC
Mirela Ciobanu
16 Sep 2026 / 5 Min Read
Former Head of Fraud Strategy at Varo Bank and current VP, Evangelist & Fraud Executive Advisor at Prove, Mary Ann Miller speaks about the evolving challenges banks face as AI-powered social engineering blurs the line between fraud and scams, and what that means for consumer protection and reimbursement.
With more than 20 years of experience across banks, fintechs, and technology providers, Mary Ann has watched fraud fighting evolve from early credit card detection models to today's AI-driven arms race. In this conversation, she unpacks why scams and fraud increasingly overlap, why reimbursement decisions remain inconsistent across the industry, and what banks and fintechs need to prioritise over the next months.
Here are five key themes from the discussion.
Fraud and scams are converging - and criminals are using AI to do it
Account takeovers, new account fraud, and even old-fashioned check fraud haven't gone away, but Mary Ann points to a newer, harder problem: the intersection of fraud and scams, where a victim is manipulated into authorising a payment themselves. She notes that criminals are increasingly using AI to make impersonation scams (posing as banks, government agencies, or businesses) more convincing than ever, making it genuinely difficult for consumers to tell a real call from a fake one.
Reimbursement remains a grey, inconsistent area
Referencing recent reporting on JPMorgan Chase's handling of scam-related reimbursement claims, Mary Ann explains that while US payment platforms like Zelle have specific operating rules around liability for certain scam types, consistency across the industry is still lacking. That inconsistency, she says, leaves consumers confused about when they will or won't be made whole, and puts pressure on banks to treat the moment a customer reports fraud as an opportunity to build (or lose) long-term trust.
Onboarding controls are the front line against mule accounts
A recurring theme is what happens on the receiving end of scam proceeds: mule accounts. Mary Ann describes how criminals engage in ‘account farming’, opening accounts in bulk using stolen or synthetic identities, often exploiting the speed at which neobanks and fintechs onboard new customers to stay competitive. Signs like shared devices, reused phone numbers, and rapid fund movement right after account opening are red flags. Her message is direct: strong onboarding and identity verification controls aren't just a compliance checkbox; they determine whether a bank becomes an unwitting conduit for scam money.
Data quality, testing, and cross-industry collaboration are essential
Mary Ann argues that fighting AI-enabled fraud requires equally sophisticated defences, starting with clean, up-to-date customer data and a discipline of continuous red-team testing of fraud controls, not just for security strength, but for the customer experience those controls create. She also points to the value of cross-industry information sharing, from private roundtables held under Chatham House rules to broader forums bringing together banks, regulators, and telecom companies, as a way to turn shared trend data into actionable, timely responses.
Agentic banking is coming fast - and identity needs to keep pace
Looking ahead, Mary Ann flags the rapid rise of agentic commerce and banking, including payments and account management happening directly inside AI chat interfaces. Her warning: identity and fraud controls can't be an afterthought bolted onto these new agentic flows later. As banks and fintechs race to launch innovative, AI-driven services, identity verification needs to be built in from the start, not retrofitted once the damage is done.
Her closing advice to fraud executives is simple but pointed: stay curious, and keep learning every day, because the pace of change in fraud and financial crime shows no sign of slowing down.
Watch the full conversation with Mary Ann Miller for her complete insights on fraud, scams, and the future of financial crime prevention.
About author
Mary Ann Miller is the VP, Evangelist & Fraud Executive Advisor at Prove. Mary Ann is a well-respected expert in the fraud and identity space. Mary Ann was most recently Head of Fraud Strategy at Varo Bank, where she led the fraud strategy process for transitioning the fintech to a nationally chartered challenger bank. Prior to that, Mary Ann held executive roles at well-known organisations such as USAA, PayPal, Lloyd's Banking Group, and other technology firms. She has also served on the US Federal Reserve Secure Payments Task Force and is a current member of the Federal Reserve’s Scams Definition and Classification Work Group.
The Paypers is a global hub for market insights, real-time news, expert interviews, and in-depth analyses and resources across payments, fintech, and the digital economy. We deliver reports, webinars, and commentary on key topics, including regulation, real-time payments, cross-border payments and ecommerce, digital identity, payment innovation and infrastructure, Open Banking, Embedded Finance, crypto, fraud and financial crime prevention, and more – all developed in collaboration with industry experts and leaders.
