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Interpol Says AI Is Supercharging Cybercrime, Not Rewriting It

Artificial intelligence is amplifying the reach, speed and credibility of cybercrime — but, according to Interpol, it is not fundamentally changing the playbook.

Artificial intelligence is giving criminals a more efficient way to commit familiar offenses such as scams and fraud, rather than creating an entirely new category of threat, according to Interpol.

Evolution, Not Revolution

AI is strengthening existing criminal techniques instead of replacing them, Bjorn R. Watne, Interpol’s global chief information security officer, told CNBC on the sidelines of Tech Week Singapore on Thursday.

Scam operators can now use AI to reach more victims at once, while advances in translation tools and digital identities are making fraudulent messages and interactions harder to distinguish from legitimate ones.

“It’s an evolution and not a revolution,” Watne said, adding that AI is primarily increasing the “speed and scale” of established tactics.

What Companies Should Protect First

As cyber threats become more sophisticated, Watne said companies should focus on protecting the assets that matter most to their operations.

That starts with identifying their “crown jewels” — the systems, data and infrastructure most critical to business continuity — and determining which adversaries would be most interested in targeting them.

From there, organizations can use threat intelligence to understand the methods and tools those actors rely on, then build defenses that are tailored to the risk.

“There is no need for everyone to try and protect against everything all at once when they’re not being targeted by it,” he said.

The right security posture, he added, depends on whether a company is facing opportunistic criminals or advanced persistent threat actors with more targeted objectives.

The Boardroom Gap In Cybersecurity

Watne also said many companies still struggle with a disconnect between executive leadership and cybersecurity strategy.

“There are still many industries where they haven’t realized that everyone today is an IT company,” he said.

Although cyber risk is rising on corporate risk registers, cybersecurity has not yet fully reached the boardroom in many organizations, Watne added.

Agentic AI Brings A New Category Of Risk

Watne said he is especially concerned about agentic AI — systems that can take actions on behalf of users — as the technology becomes more capable.

The risk, he warned, is no longer limited to an AI delivering inaccurate information. If an AI system begins making incorrect decisions or taking harmful actions in the physical world, the consequences could be far more serious.

“One thing is that an AI is feeding you the wrong information,” Watne said. “But when an AI is actually performing an action and it starts doing the wrong actions, especially in the physical domain, that can have consequences on bodily harm of humans.”

He pointed to the growing use of AI in cars and self-driving vehicles as a particularly sensitive area.

Why Trust Is The Real Vulnerability

Watne said those risks are compounded by the unusually high level of trust people place in technology compared with other sectors such as financial services.

In financial services, consumers tend to be more cautious and control-oriented, relying on safeguards such as PIN codes and staying alert to threats like card skimming. With technology, however, users often adopt new devices and applications quickly, without the same level of scrutiny.

“When it comes to technology, the trust level is through the roof,” Watne said, noting how readily people click through prompts and grant access to new tools.

As AI systems become more capable of acting on users’ behalf, he said that trust will require far greater scrutiny.

ESMA Pushes EU To Tighten Crypto Rules On Fraud, Influencers And DeFi Risk

The European Securities and Markets Authority is pressing Brussels to strengthen the European Union’s crypto rulebook, warning that the current framework leaves gaps that can be exploited by fraudsters, unregulated promoters and fast-evolving digital asset business models.

A Regulatory Reset For A Fast-Changing Market

In a set of recommendations to the European Commission, ESMA said the bloc should simplify its crypto regime while tightening investor protections and adapting to developments such as decentralised finance, staking, lending and borrowing. The regulator’s central message is clear: Europe needs a framework that is easier to apply, but harder to abuse.

That balance matters. Crypto markets have expanded beyond simple token trading into a broader ecosystem that includes yield products, liquidity services and increasingly complex structures. Regulators, ESMA argued, must keep pace with that shift rather than rely on rules designed for an earlier stage of the market.

Tougher Rules For Promotion And Disclosure

Among ESMA’s main proposals are stricter standards for crypto marketing, particularly where digital assets are promoted by online influencers and third parties. The authority wants clearer safeguards around promotional activity that can mislead retail investors or obscure the risks involved.

It is also calling for greater transparency on fees and costs across the sector, alongside proportionate disclosure requirements for staking, lending and borrowing products. Those disclosures, ESMA said, should spell out the relevant costs, risks, rewards, collateral arrangements and the possibility of losses before an investor commits capital.

For a market often marketed on speed and simplicity, the regulator’s message is that complexity must be laid bare rather than glossed over.

Sharper Tools Against Fraud And Non-Compliant Firms

ESMA is also seeking stronger supervisory powers to tackle unauthorised services, online fraud and stablecoins that do not meet EU standards. That includes improving the bloc’s ability to detect, block and deactivate fraudulent websites, as well as freeze crypto assets where there is suspicion of market abuse or terrorist financing.

The watchdog wants a firmer approach to firms based outside the EU that solicit European investors without authorisation under the Markets in Crypto-Assets regime, known as MiCA. It is also pushing for explicit rules preventing regulated crypto firms from offering services linked to stablecoins that fail to comply with MiCA requirements.

The goal is to speed up enforcement and reduce the scope for regulatory arbitrage, where firms exploit differences in national supervision or jurisdictional loopholes to sidestep tighter oversight.

Clarifying DeFi And Token Classification

As decentralised finance and stablecoins continue to grow, ESMA says the EU needs clearer criteria for determining which activities are truly decentralised and which should fall under regulatory supervision. It also proposes the creation of a new regulated crypto-asset service for firms that give users access to DeFi protocols.

At the same time, the authority wants more certainty around how crypto-assets are classified, including newer structures such as hybrid tokens. To reduce inconsistency across the single market, ESMA suggests giving itself the power to issue binding opinions on token classification so that identical products are treated the same across the EU.

That move would not only support harmonised enforcement, but also help firms navigate a market where the boundary between financial instrument, utility token and payment asset is increasingly blurred.

Simplification Without Weakening Oversight

Despite its tougher posture on fraud and consumer protection, ESMA also supports parts of the EU’s broader simplification agenda. It recommends streamlining crypto-asset white paper notification procedures, cutting duplicate authorisation requirements for some regulated firms and improving the consistency of prudential rules.

In practice, that would aim to reduce compliance friction for legitimate businesses without sacrificing supervisory standards. For established firms, the benefit would be fewer procedural overlaps; for investors, the gain would be clearer and more consistent protections.

Looking Beyond MiCA

ESMA’s proposals do not stop at the immediate review of MiCA. The authority says the EU should also prepare a framework for tokenised securities and on-chain settlement, laying the groundwork for a more integrated European tokenised capital market.

That longer-term vision points to a future in which securities issuance, trading and settlement increasingly move on-chain, with cross-border activity made easier by common rules and interoperable infrastructure. For Europe, the stakes are significant: get the framework right, and the bloc could become a serious hub for regulated digital finance. Get it wrong, and activity may migrate to jurisdictions that can move faster.

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