---
title: Banks are fighting AI scams with AI tools that fail independent checks
description: A survey of Indonesian banking leaders puts social engineering at the top of the fraud list, a preprint finds financial agents failing verification in every session, and U.S. regulators are asking banks about audit trails.
canonical: https://hangingcontext.com/stories/2026-11-11/finance-ai-controls-lag-adoption/
last-updated: 2026-11-11
url: https://hangingcontext.com/stories/2026-11-11/finance-ai-controls-lag-adoption/
published: 2026-11-11T12:37:21Z
edition: 2026-11-11T12
newsroom: finance-investing
beat: None
trust: confirmed
source_count: 4
cited_manifest_ids: ['1794367200797111707', '1794378580751179678', '1794387135486221813', '1794382988909204627']
---

# Banks are fighting AI scams with AI tools that fail independent checks

*A survey of Indonesian banking leaders puts social engineering at the top of the fraud list, a preprint finds financial agents failing verification in every session, and U.S. regulators are asking banks about audit trails.*

Confirmed · 4 Manifests · Finance & Investing · Published 2026-11-11 12:37 UTC

## Key facts

- In a survey by BioCatch of 100 fraud, anti-money-laundering and compliance leaders at Indonesian banks, social engineering was named the top fraud concern, with 43% reporting increasing fraud attempts. (self-reported) [cites: 1794367200797111707]
- Malaysian police arrested 35 foreign nationals in Penang on suspicion of running a romance and gold-investment scam centre targeting Chinese women via Telegram, seizing 119 mobile phones and three laptops. [cites: 1794378580751179678]
- In a preprint, the FINCOSMOS evaluation found that across 150 sessions, no session was accepted, and every session signed off by the simulated user failed a program check. (self-reported) [cites: 1794387135486221813]
- Uptiq says its customers have seen a 36% reduction in financial spreading time and 41% faster underwriting, while U.S. regulators are questioning banks on AI agent limits, audit trails and human involvement. (self-reported) [cites: 1794382988909204627]

## The fraud bankers name first

Banks are adopting artificial intelligence faster than they can check it, and the evidence this week comes from both sides of the problem. A survey by BioCatch of 100 fraud-management, anti-money-laundering and compliance leaders at Indonesian banks identifies social engineering as their top fraud concern. Of those surveyed, 43% report increasing fraud attempts at their organisations, and 42% report increasing fraud losses. More than half, 55%, are actively evaluating, procuring or implementing new fraud-prevention solutions. [cites: 1794367200797111707]

The gap the bankers name is specific. Half of the surveyed leaders identify coached user journeys, cases where a victim is talked through a transaction by a scammer, as a major fraud-detection gap, and 19% rank it as their single greatest weakness. At the same time, more than four in five consider their existing fraud controls effective, and only 34% estimate their institution's annual fraud losses exceed $10 million. Confidence in the controls and a named hole in them sit side by side. [cites: 1794367200797111707]

## The scam centres behind the numbers

The hole is not theoretical. Malaysian police arrested 35 foreign nationals in Bayan Lepas, Penang, on suspicion of operating an online love-scam and gold-investment scam centre that had been running since September 2026, targeting Chinese women using Telegram. Police seized 119 mobile phones and three laptops, with the seized equipment valued at approximately RM60,000. Tookitaki, which reported the bust, says romance scams and investment scams are increasingly reinforcing each other as part of a single scam journey, and that organised centres split recruitment, communication, collection and movement of proceeds between different people. [cites: 1794378580751179678]

> **From Synorb** — Connect your agent over MCP. Add https://mcp.synorb.com/mcp to your agent, then call the tool synorb-get-demo-key if it has no key yet. It needs no email and no form. Keys are free for 72 hours, and new keys are limited per network. [How to connect](https://synorb.com/connect/start)


Tookitaki's advice to banks follows from how the centres work: watch for a customer's behaviour changing under social engineering, and check whether accounts receiving payments from many unrelated people, with no clear economic reason, belong to a broader scam network. Banks should also monitor for sudden increases in transaction frequency and for beneficiaries linked to earlier scam complaints. [cites: 1794378580751179678]

## The tools have a verification problem

The tools banks are buying to keep up have their own verification problem. In a preprint, researchers behind FINCOSMOS, an evaluation framework for financial AI agents, report that across 150 sessions, no session was accepted under the framework, and every session signed off by the simulated user failed a program check. Only 25 of 120 sessions delivered the investor's strategy, and human experts attributed 88.33% of failures to the agents. An agent with persistent memory learned all ten tasks after receiving feedback from the framework, which suggests the checking, not just the agent, is part of what is missing. [cites: 1794387135486221813]

The commercial side of the same story is moving anyway. Uptiq, which sells AI financial spreading for commercial lending, says its customers have seen a 36% reduction in spreading time, 41% faster underwriting, and up to three times as many deals per analyst, with 95% or better extraction accuracy and low-confidence fields routed to analysts. The company says U.S. regulators are questioning banks on AI agent limits, audit trails and human involvement, and notes that Federal Reserve guidance SR 26-2 and OCC Bulletin 2026-13 replace SR 11-7 with a risk-based approach to model risk management, while generative and agentic AI models are currently excluded from the revised guidance's scope. [cites: 1794382988909204627]

## A control gap, not a technology gap

Put together, the week describes a control gap rather than a technology gap. The scams work by coaching a real person through a real payment, which is why coached journeys defeat controls built to spot fake accounts. The agents fail because they produce convincing reports that mask wrong data or flawed backtests; the preprint finds that financial agents working on the open web can fail without any visible error. And the regulators are asking about audit trails and human involvement while the newest guidance leaves generative models outside its scope. Banks are buying the tools. The open question is whether anyone can prove what the tools did. [cites: 1794367200797111707, 1794387135486221813, 1794382988909204627]

## What is still unresolved

- Whether banks close the coached-journey gap, given that most surveyed leaders consider their current controls effective.
- Whether financial agents improve under program-based verification, or whether the FINCOSMOS failure rates hold for other agent designs.
- How U.S. regulators will treat generative and agentic AI models that sit outside the revised model risk guidance.
- Whether the Penang bust disrupts the wider romance and investment scam networks, or only one centre.

## Decision card

- **Useful for:** bankers weighing AI fraud tools; executives setting AI governance and audit trails
- **Not for:** judging any single vendor's product; estimating fraud losses outside Indonesia
- **Compare against:** program-based verification results for other financial agents; prior BioCatch fraud surveys

## Provenance ledger

| Manifest id | Title | Source | Claims used | Published |
|---|---|---|---|---|
| `1794367200797111707` | Indonesian banking leaders identify social engineering scams as top fraud threat | [biocatch-press-releases](https://biocatch.com/press-release/indonesian-banking-leaders-identify-social-engineering-scams-as-top-fraud-threat) | 1794367454795112396, 1794367454802112399, 1794367454803112400, 1794367454808112403, 1794367454805112401, 1794367454807112402, 1794367454800112398, 1794367454798112397 | 11-11 00:00 |
| `1794378580751179678` | Love First, Gold Next: Inside Penang's Telegram Investment Scam Bust | [tookitaki-research](https://tookitaki.com/compliance-hub/penang-telegram-love-gold-investment-scam-bust) | 1794378911571181577, 1794378911575181580, 1794378911577181582, 1794378911573181579, 1794378911578181583, 1794378911580181585, 1794378911584181590, 1794378911582181587, 1794378911583181588, 1794378911586181591 | 11-11 00:00 |
| `1794387135486221813` | FINCOSMOS: An Open-World Evaluation Paradigm for Agents in Finance | [huggingface-daily-papers](https://huggingface.co/papers/2611.07464) | 1794387578879222895, 1794387578883222896, 1794387578907222901, 1794387578895222898, 1794387578898222899, 1794387578859222889 | 11-11 00:00 |
| `1794382988909204627` | AI Financial Spreading: From Re-Keying Statements To Reviewing Exceptions | [uptiq-blog](https://uptiq.ai/blogs/ai-financial-spreading-from-re-keying-statements-to-reviewing-exceptions) | 1794383276859205435, 1794383276863205437, 1794383276866205439, 1794383276865205438, 1794383276861205436, 1794383276868205440, 1794383276869205441 | 11-10 00:00 |

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Cited Manifest ids:

- `1794367200797111707`
- `1794378580751179678`
- `1794387135486221813`
- `1794382988909204627`

```sh
for id in 1794367200797111707 1794378580751179678 1794387135486221813 1794382988909204627; do
  curl -s -H "Authorization: Bearer $SYNORB_KEY" "https://api.synorb.com/manifests/by-id/$id"
done
```

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---
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