'There is an urgent need to detect AI-powered crimes'

As artificial Intelligence (AI) rapidly changes the financial landscape, there is an urgent need to detect AI-powered crimes faster. The Oman chapter of the Association of Certified Fraud Examiners (ACFE) recently brought AI-powered financial fraud into focus.

The opening session of the forum was presided over by Abdulsalam bin Mohammed al Murshidi, Chairman of Oman Investment Authority (OIA), while Nasser bin Khamis al Jashmi, Chairman of the Tax Authority, and Shaikh Abdullah bin Salim al Salmi, Executive President of the Capital Market Authority (CMA), attended as Guests of Honour.

Khalil bin Nabhan al Rawahi, Chairman of the Oman Chapter of ACFE, told the Observer that the conference was attended by various entities, including the State Audit, the Public Prosecution, the Royal Oman Police, the Central Bank of Oman, the Tax Authority, and other ministries, as well as private banking and financial sectors. "Attendees had the opportunity to share experiences and implement measures to combat fraudulent cases. As we navigate a rapidly changing financial landscape, it is essential for us to come together as a community to address fraud with innovative solutions," he said.

"This forum demonstrates our commitment to creating a safer and more resilient financial future for Oman and beyond," he added.

Padma Shri T N Manoharan, a chartered accountant and former President of the Institute of Chartered Accountants of India (ICAI), who currently serves as the Chairman of the Industrial Development Bank of India, addressed two key aspects in his keynote speech: how to prevent fraud, and how to detect ongoing cases faster and mitigate them effectively.

He emphasised that organisations should focus on intangibles such as product and service quality, human resource development, employee well-being, customer satisfaction, brand image, goodwill, and reputation.

Regarding the current world focus on ESG (environmental, social, and governance), Manoharan explained that organisations need to prioritise ethical practices to earn profits. He stressed the importance of value-based profit earning rather than compromising values for tangible gains.

In the digital era, seamless global transactions facilitated by technology offer numerous advantages such as scalability , speed, accuracy, quality, and cost optimisation.

However, these advancements have also provided opportunities for cybercriminals to engage in fraudulent activities. Therefore, forums like these, along with forensic auditors, must collaborate to develop controlled measures to prevent and detect cybercrimes promptly.

The conference also delved into the psychological aspects of fraudulent cases.

Dr Hamed al Sinawi, a senior psychiatrist, explored the differences between scams and fraud activities, as well as the profiles of fraud perpetrators and victims. He emphasised the importance of understanding the psychological tricks used in scams and the mental health impacts on victims.

Over 350 experts, government representatives and industry leaders from Oman and other countries gathered at the event to address emerging fraud challenges and prevention opportunities in the digital era.