At AFP 2025 in Boston, a panel featuring Larry Zelvin, Executive Vice President and Head of the Financial Crimes Unit at BMO; Sarah McMorris, CTP, Lead of Treasury Operations at Affirm; and Marlys Green, Director of Treasury Controller at PDS Health, highlighted the significant evolution of threats posed by AI-enabled cybercrime.
The primary insight from their discussion emphasized the necessity of a comprehensive crisis management approach. This entails not only technical preparedness but also fostering risk awareness and building robust internal and external communication channels. Regular crisis simulations, redundancy in critical systems, and cultivating strong, trust-based partnerships have become essential. Even the most sophisticated organizations can find themselves unprepared for the rapid and advanced nature of modern threats.
According to Zelvin, McMorris, and Green, maintaining technological vigilance, engaging in proactive crisis planning, and promoting cross-department collaboration are vital strategies for the future. However, the current landscape presents formidable challenges. Zelvin spoke about the alarming rise of “Asian fraud camps,” where techniques like "pig butchering" are leading to severe consequences, including identity theft and physical harm. “It’s crucial to understand that these crimes affect all of us,” he stated.
Zelvin also addressed how AI has lowered the barriers for criminal activities. He recounted a conversation with the CEO of Pindrop Security Solutions, who revealed that creating convincing deepfake videos can be achieved with just a short audio clip and a photograph. Zelvin demonstrated this by producing a deepfake of himself making statements a security professional usually would not endorse, such as underestimating password complexity. He confirmed that the process required only around $400, some time, and no prior experience, highlighting the accessibility of such malicious tools.
Lessons from Past Crises
McMorris shared insights from the recent collapse of Silicon Valley Bank, detailing the urgency required to manage funds and ensure continuity for merchants and vendors. She noted, “The situation developed rapidly, and we needed to respond immediately.” To mitigate potential fallout, Affirm took swift action by transferring cash from distressed accounts to a more stable institution, ensuring readiness for the impending crisis.
Reflecting on the challenges faced, McMorris remarked, “Our ability to contact every merchant and vendor individually to understand their needs was vital.” She emphasized the significance of having diversified banking relationships, allowing her team the agility to react and pivot when necessary. “It’s become a new standard for us as we look to expand,” she noted, referencing the company’s international presence and ongoing growth plans.
Green reinforced the importance of preparedness by stating, “Expect the unexpected and be ready to respond decisively. You must ensure that all bases are covered and have alternative plans in place.”