Crypto for Advisors: Strengthening defenses against AI fraud

Happy Thursday, advisors!

In today’s newsletter, Kriti Bansal examines the rise of AI-driven fraud and provides a framework of rigorous financial controls to help advisors secure client assets against sophisticated impersonation tactics.

Then, in “Ask an Expert,” Varun Choudhary, CEO of ORO, discusses how money managers can automate defensive layers against fraud by transitioning to programmable smart accounts and using automated monitoring to create programmatic security guardrails at the account level.

Happy reading.

As AI makes impersonation cheap and convincing, an advisor’s strongest protection isn’t a better eye for fakes — it’s the verification, separation of duties and reconciliation they already know.

For most of crypto’s history, fraud was a volume business: send enough phishing messages and a few would land. But artificial intelligence has changed the economics of fraud. Deception is now cheaper to produce, more personalized and markedly more convincing — and increasingly, it arrives in the form of someone your client already trusts.