Financial institutions are increasingly burdened with detecting and preventing financial crimes, leading to heightened operational costs and resource allocation challenges.
According to the FBI’s Internet Crime Report 2024, cybercrime continues to rise sharply in both frequency and financial impact. Last year alone, the FBI received 859,532 complaints related to cybercrime — a notable increase that coincides with a surge in reported losses, which grew from $12.5 billion in 2023 to an estimated $16.6 billion in 2024.
These escalating figures underscore the growing urgency for banks and regulators to adopt more sophisticated, technology-driven approaches to fraud detection and cybersecurity.
However, adopting these technologies requires significant investment and expertise, posing challenges for institutions striving to balance compliance obligations with operational efficiency. Moreover, the effectiveness of anti-money laundering efforts is often hindered by a lack of collaboration between the public and private sectors.
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