The increasing integration of artificial intelligence (AI) and machine learning (ML) into various sectors, particularly finance and cybersecurity, is raising concerns about emerging fraud schemes. The Financial Crimes Enforcement Network (FinCEN) has issued alerts regarding the exploitation of generative AI by fraudsters to bypass identity verification and due diligence controls at financial institutions. This trend has intensified issues related to identity fraud and banking mule risks, prompting discussions in the U.S. Senate Subcommittee on consumer protection in the age of AI. Key stakeholders, including lawmakers and industry experts, are emphasizing the need for adaptive security measures to combat these evolving threats. The dialogue reflects a broader recognition that AI is not only transforming operational frameworks but also necessitating a proactive approach to safeguarding against its misuse.