Hungary’s Innovative Approach to Cybercrime and Green Disclosure
In a groundbreaking initiative, Dr. Csaba Kandrács from the Central Bank of Hungary (Magyar Nemzeti Bank) unveiled a cutting-edge artificial intelligence (AI) system designed to combat fraudulent financial transactions. This timely development aims to enhance the security and integrity of banking operations across Hungary.
“All the banks involved can request a fraud score from the central detection system, which evaluates both the sender and the transaction receiver. This process occurs within five seconds, as practical instant payments currently take only two seconds,” Kandrács explained.
This innovative system processes billions of transactions daily, with an anticipated increase in precision as more data is integrated into its algorithms. Dr. Kandrács further disclosed that AI is also being harnessed to validate the credibility of Environmental, Social, and Governance (ESG) disclosures among companies, thereby fostering greater transparency.
“The Hungarian model has the potential to be adopted worldwide; for instance, the AI solutions in Kazakhstan can serve as a learning tool for us, and vice versa,” he added.
Türkiye’s Perspective on AI in Banking: Opportunities and Risks
Dr. Mustafa Aydin, vice-president of Türkiye’s Banking Regulatory and Supervision Agency (BRSA), highlighted the transformational role of AI in today’s financial landscape, stating that it is no longer just a future concept but a current reality.
“AI is not just an idea of the future; it is already integrated into our systems. Like many advancements, AI brings both opportunities and challenges,” Aydin remarked.
While Dr. Aydin applauded the advantages of AI, including real-time supervision, automation, and enhanced efficiency within the banking sector, he also raised critical concerns regarding the potential risks it introduces. These include strategic, legal, operational, and reputational threats that businesses must navigate carefully.
Aydin cautioned that poor-quality data could severely undermine trust in AI systems. He stated, “Inadequate data can yield misleading results. You could pose the same question twice and receive different answers.” Additionally, he drew attention to cybersecurity vulnerabilities, warning that AI tools could inadvertently disclose confidential information, making them susceptible to new forms of cybercrime.
“AI tools may unintentionally include sensitive information, and adversaries can exploit weaknesses through techniques like rapid data injection and compromised training datasets,” he noted.
Both experts emphasized the necessity of balancing speed with security, innovation with responsibility in the adoption of AI in finance. Participants from Kazakhstan expressed keen interest in leveraging the experiences of Hungary and Türkiye to support their digital transformation objectives. Such international collaboration may pave the way for a more secure and efficient financial future worldwide.
In related news, it has been reported that the Kazakhstan civil aviation sector is experiencing dynamic growth, solidifying its position as a key regional transit hub.