Debra Au on the evolution of financial crime in the digital age

As financial crime evolves in the era of digital banking and AI, seasoned leader in financial crime prevention Debra Au discusses combating fraud, adapting to global trends and leading change in a male-dominated industry

Money laundering and terrorist financing used to be the sum of financial crime. But as technology adoption has grown, particularly with the advent of smart phones, and in the wake of the global pandemic where digital and online reliance soared, the extent of financial crime has only expanded and increased.

Debra Au has been working in financial crime prevention for two decades and has seen firsthand how it has evolved, broadening to include not only tax evasion and bribery and corruption but, more recently, fraud scams and deepfakes, particularly with the advent of artificial intelligence.

Many of these developments have been seen around the world, but there are differences in the prevalence of various crimes according to location. For example, Au, who is currently managing director, head of legal, compliance and secretariat for Hong Kong and China at DBS bank and based in Hong Kong, says that fraud scams are growing globally, but in Asia she sees a greater number of identity theft and account takeover cases, while the US and Europe experience more crime related to fast payment systems (FPS) and real-time transaction monitoring online, in part due to the wide uptake in online banking due to the geographic size of these places and larger suburban populations with less easy access to physical banking.

Does that mean it’s better to do financial transactions in person in a bank branch? “Yes and no,” says Au. “Yes, in terms of more human judgement and identification and verification that uses human judgement, but there are still human errors, so I would say it depends on [the transaction]. If you are doing a transaction with a larger amount of money, you may prefer to go to a branch physically, but if you’re talking about daily consumption, it may be easier and faster to do it online and your potential loss is relatively contained.”

In order to catch the bad actors, we should also use the same logic and technology.

- Debra Au -

The recent rise of AI, and particularly generative AI, has resulted in an increase in financial crime, including new forms, but the technology can also be used to combat it. Au, who came to banking equipped with a law degree, started using AI in her job about seven years ago.

“The concept is really using data analytics to do more of the analysis in patterning and profiling transactions and consumer behaviour to identify unusual or potentially suspicious transactions,” says Au. As new waves of financial crime see bad actors leveraging AI tools and generative AI to do bad things, Au says that “in order to catch the bad actors, we should also use the same logic and technology.”

Such technologies can save time, as it’s more productive and efficient to have AI trawl through hundreds of thousands of transactions in order to identify suspicious or abnormal ones, than a human, and it can also reduce human error.

Be alert, attentive and adaptable to change, especially in the digital driven era. Know and learn the basics and adapt to global trends to protect yourself.

- Debra Au -

Au previously held head of financial crime roles at French bank Société Générale and at HSBC, in which she shared intelligence related to vicious transaction monitoring with law enforcement agencies to support their operations, allowing them to freeze money and recover funds. One of her proudest achievements was working on the Deferred Prosecution Agreement (DPA) case in 2021 involving Huawei’s Meng Wanzhou, in which Meng was charged with bank and wire fraud in a scheme to defraud HSBC while violating US sanctions against Iran.

Today, as well as her role at DBS, Au is co-chair of the non-profit Global Coalition to Fight Financial Crime (GCFFC APAC Chapter) through which she aims to foster private-public partnerships to work with regulators and law enforcement to tackle financial crime, primarily in Hong Kong, Singapore and Australia, but with a goal to expand to fast growing economies in the region, including India, Indonesia and Vietnam.

Here, Au shares how people can protect themselves against financial crime, some of the challenges she has faced as a woman in the field, and the advice she has for others keen to drive change.

Don’t be scared to put yourself outside your comfort zone, because if you never get out of your comfort zone, you don’t know your potential and will never unlock it.

- Debra Au -

What advice do you have for how people can protect themselves against financial crime?

Be alert, attentive and adaptable to change. Some people are not, especially in the digital driven era, and they need to know and learn the basics and adapt to global trends so that they can protect themselves.

Have you faced any challenges as a woman working in financial crime, particularly in the male-dominated world of finance?

Of course. When you work in banks, especially at the high table, it’s quite male dominated, with opinionated and heavy-minded voices that are characteristic of men. So what females can bring to the table is more balanced, neutral views. Men in general tend to be less detail oriented and I think that is something that women can contribute. What we really need is for women in this sector to speak more loudly, be clear and articulate, and represent. We can’t be shy.

You are leading change in your fight against financial crime. What advice would you have for others keen to lead change or drive impact?

Don’t be scared to put yourself outside your comfort zone, because if you never get out of your comfort zone, you don’t know your potential and you will never unlock it. And don’t be worried about failure, because failures are priceless lessons that in time will pay off.

Front & Female Changemakers celebrates the extraordinary journeys of inspiring women who have emerged as powerful changemakers in a range of fields, offering a glimpse into their lives and showcasing their courage, vision and relentless pursuit of change and progress. From social entrepreneurs and business leaders to educators, artists, activists and scientists, Front & Female changemakers exemplify the ability to challenge the status quo and demonstrate the power of women to effect change.

TEDxTinHau Women returns to Hong Kong’s Xiqu Centre on December 6, 2024. For further information and ticketing, click here.

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Debra Au on the evolution of financial crime in the digital age and how AI can help to fight it