"AI as a Shield Against Financial Crime" — Korea Financial Research Institute Hosts Seminar on AI-Powered Fraud Detection
By Dong-hae Park | News1 | April 17, 2025
SEOUL — Artificial intelligence (AI) is emerging as a key tool in the financial sector's fight to prevent recurring fraud and misconduct. At a recent seminar hosted by the Korea Financial Research Institute, experts stressed the need to shift from reactive punishment to proactive prevention—arguing that financial institutions must embrace AI technologies to stay ahead of evolving threats.
Because it is difficult for individual institutions to develop advanced AI systems on their own, attendees emphasized the importance of collaborative efforts and shared infrastructure, including the development of joint detection models tailored to the needs of the Korean financial industry.
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Young-seok Kim, CEO of Bonanza Factory, underscored the urgent need for AI-driven solutions by presenting real-world cases of crypto-enabled financial crime. He emphasized the importance of enhancing AI-based abnormal transaction detection and tracking systems, tackling unregistered virtual asset operators, blocking transactions with North Korea-linked exchanges, and strengthening monitoring and interdiction of illicit fund flows.
“We must advance our AI capabilities to detect and shut down criminal wallets, as well as prevent money laundering using digital assets,” Kim said, calling for broader cooperation across the public and private sectors.
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