Cybercriminals Are Using AI to Outpace Defenses – And They’re Winning

While governments and enterprises cautiously navigate the responsible use of AI, cybercriminal syndicates are already two steps ahead—using AI with no ethical or regulatory restraints. Operating with a technological lead of up to two years, these groups are deploying increasingly sophisticated fraud schemes that often leave businesses flat-footed, especially in fast-growing digital economies across Asia.

AI-Powered Crime: Fast, Scalable, and Borderless

Cybercriminal groups today are not disorganized lone actors. They operate as structured enterprises, complete with R&D, tool developers, marketing teams, and support channels.

These groups have created sprawling underground ecosystems where AI-generated fraud is bought, sold, and refined in real time.

“In Southeast Asia, we’re seeing a surge in AI-generated voice scams where criminals use voice cloning to impersonate executives or family members,” says a regional security expert based in Singapore. “These scams are so convincing that even seasoned professionals are falling for them.”

One stark example is the rise of crime-as-a-service (CaaS) platforms. These dark web marketplaces offer everything from phishing kits to AI-powered deepfake tools. As Kevin Gosschalk, CEO of Arkose Labs, noted in a recent RSAC Conference 2025 interview, some of this software isn’t cheap—or amateur.

“There are dedicated scammers who just build the tools. One software package that can generate a synthetic video of you—your likeness, voice, and gestures—costs $10,000 a month. It’s not for pranksters. It’s for professional fraud rings,” Gosschalk explained. “And it’s being used exclusively by criminals.”

Specialized Attacks by Industry

Cyberattacks aren’t one-size-fits-all. Criminals tailor their tactics to specific industries, targeting the weakest links with the highest rewards. In the airline industry, for example, loyalty program fraud has become a billion-dollar problem. Attackers use stolen credentials and AI-enhanced bots to steal and redeem frequent flyer miles across Asia-Pacific carriers—often before users even notice.

E-commerce and digital payment platforms in countries like India, Indonesia, and the Philippines are also frequent targets. Attackers use AI to bypass biometric verification, exploit real-time payment systems, or mimic human-like browsing patterns to evade detection.

A Community of Criminal Innovation

Perhaps the most chilling revelation is just how open and collaborative these criminal ecosystems have become. Telegram channels with hundreds of thousands of users serve as active forums for fraudsters to exchange tips, share updated AI scripts, and even review software performance.

“These communities are not just growing—they're thriving,” Gosschalk said. “They update each other about which anti-fraud tools are being bypassed and which banks or platforms have the weakest defenses.”

Defending Against AI Fraud: A Behavioral Approach

So what can businesses do when fraudsters are using tools indistinguishable from legitimate innovation?

Behavioral analysis is emerging as a leading defense strategy. Unlike traditional rule-based systems, behavioral biometrics can spot micro-patterns in how users type, move their mouse, or interact with digital interfaces—signals that AI bots struggle to mimic consistently.

“Criminals can forge your face and voice, but they can’t easily replicate how you move through a website,” Gosschalk noted. “By understanding human behavior at a granular level, you can separate real users from synthetic identities.”

In Asia, financial institutions and digital wallets are increasingly investing in risk-based authentication models that evaluate contextual signals—device hygiene, geolocation anomalies, time-of-day activity—to flag suspicious sessions even when credentials seem valid.

Conclusion: The Arms Race Is On

Cybercrime syndicates are no longer just hacking—they’re innovating. With AI as their weapon and a global network of collaborators, these groups are accelerating at a pace that many organizations in Asia and beyond are struggling to match.

But the answer lies not in panic, but in proactive, intelligence-led defense. Enterprises must adapt by leveraging the same tools—AI, behavioral analytics, and real-time data orchestration—to outthink and outmaneuver their adversaries. The future of cyber defense won’t be won by static walls, but by systems that learn, adapt, and fight back faster than the criminals do.