The Commonwealth Bank reportedly suspects around A$1 billion in home loans were obtained fraudulently, including through AI-generated documents. The Australian Financial Review says the bank has reported itself to police and the corporate watchdog to investigate.

According to sources quoted in the newspaper, Australia’s largest bank discovered the suspected fraud last year, partly thanks to two whistleblowers. After rival bank NAB was allegedly defrauded of around $150 million, the Commonwealth Bank also reportedly began investigating its own loans. Its Australian home loans alone are worth around $634 billion.

While the bank is yet to make any detailed comment on the case, a Commonwealth Bank spokesman said the industry faced “sustained and increasing levels of attempted fraud, driven by criminals who actively evolve their methods”.

This is an industry-wide challenge, with fraud being attempted through mortgage broking and referral channels.

This is an industry-wide challenge, with fraud being attempted through mortgage broking and referral channels.

Even though I’ve been warning about the need to make AI companies do more to stop facilitating crime, the sheer scale of this suspected fraud still........

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