Reported by ASHISH THAPAR

(Excerpt shared below. To read full report, go to: https://fortune.com/asia/2025/08/31/asia-ai-bank-fraud-cybercrime-ntt-data/)

Why APAC is outpacing in AI-driven fraud defense

Asia’s greater focus on AI-powered fraud prevention is due to the region’s exposure to financial crime. Asian institutions are in the trenches when it comes to cybercrime, pushing them to rapidly adopt AI-driven strategies.

The scale of financial loss is staggering. In 2024 alone, the Asia-Pacific region lost an estimated $688 billion to fraud, nearly two-thirds of the world’s total. Asians’ rapid adoption of digital wallets and payment platforms makes matters worse: By outpacing the rollout of strong consumer protections, this usage opens doors for cybercriminals and is putting banks on the front lines.

Asian banks are leading the way in adopting ISO 20022, a new messaging standard that allows financial institutions to use AI to precisely detect anomalies and cut exposure to financial crime.

Same tech, different playbooks

Regional priorities are shifting as banks adopt AI. Asia-Pacific banks are focusing on fraud prevention and security, while European and U.S. institutions instead use AI to personalize products and customer service.

According to our research, just over half of organizations in the UK want to use generative AI to enhance the customer experience. That reflects the UK’s hyper-competitive market, where user-friendly interactions are key to winning customer loyalty. The U.S. is splitting its AI focus between customers experience and operational automation, supporting both consumer demands for frictionless banking and internal goals for efficiency.

In contrast, 58% of Asia-Pacific banks are focusing their AI investments on fraud detection and anti-money laundering, well above the global average.