KUWAIT CITY, Sept 25: Artificial intelligence (AI) is no longer just a tool to assist in completing transactions and analyzing data in light of the accelerating developments in modern technology, as it has become a double-edged sword. If used correctly, AI enhances security and trust, but if misused, it may increase the risks of financial fraud, cybercrime, and manipulation of public opinion. Although AI offers unprecedented opportunities for economic growth and innovation in various fields, it has also opened the door wide to innovative methods of fraud and deception using AI tools in what is now known as ‘deepfake’, which threatens individuals and institutions. Legal experts and businesspersons have warned about the escalation of global cyber fraud losses that exceed 33 percent in the United States of America, and cost the United Kingdom (UK) more than one billion sterling pounds in 2024. They confirmed to the newspaper that the solution lies in raising public awareness and enacting robust legislation that protects individuals and institutions and ensures the proper use of technology.

They added that AI is a fundamental pillar of the economy and services, but it can also be a dangerous tool in the hands of fraudsters if not properly monitored and regulated. Dr. Safaa Zaman, a faculty member at Kuwait University and head of Kuwait Society for Information Security, emphasized that artificial intelligence is a double-edged sword. “If used correctly, it enhances security and trust, but if used incorrectly, it may increase the risk of financial fraud and cybercrime.” She told the newspaper that AI has become an integral part of the world of finance and business, contributing to the acceleration of transactions and the detection of fraud attempts.

However, she warned against its exploitation to innovate complex fraud and hacking methods, such as developing smart malware that bypasses traditional security systems and creating phishing emails and chats, in addition to generating fake voices and images (deepfakes) to impersonate identities, manipulate transactions and financial data, and automate fraud operations on a large scale and at a speed that is difficult to track. She cited recent international statistics showing the extent of deepfakes and financial fraud using artificial intelligence technologies, noting that they contributed to 33 percent increase in internet losses in 2024, according to FBI statistics, as well as the theft of more than a billion pounds in the same year, according to UK Finance. She noted that Deloitte, the world’s largest professional services firm, expects AI-enabled losses to reach $40 billion by 2027 due to the speed and accuracy of fraud.

Businessman and economist Qais Al-Ghanim, the latest victim of artificial intelligence, warned against falling into the trap of in-depth fraud. He disclosed “a video clip of myself using artificial intelligence technology recently went viral, promoting the launch of a new social platform supported by local banks, promising weekly profits from home. Naturally, this clip is completely untrue and has no connection to me. The promises it contains include guaranteed fixed profits or official support, which are utterly false. Unfortunately, this is not the first time that the names of well-known figures are exploited and used in repeated attempts at fraud and deception.” Asked if current legal legislation is capable of addressing the growing practices of deep misinformation, Attorney Enaam Haidar pointed out that despite the existence of general penal and regulatory laws, current Kuwaiti legislation remains insufficient to control the use of artificial intelligence technologies in cyber fraud crimes.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff