UAE banking sector sets benchmark in AI-powered digital security

The UAE banking sector has positioned itself as a global model for digital banking security, leveraging artificial intelligence, big data, and advanced analytics to enhance fraud detection, strengthen defenses, and deliver more secure customer experiences.

Cybersecurity experts say banks in the UAE are undergoing a deep transformation, combining investment in cutting-edge technologies with flexible regulations and advanced infrastructure, according to a WAM report. This shift is enabling the sector to respond effectively to rising global cyber threats and regulatory challenges.

AI-driven tools are now central to these efforts, allowing banks to detect suspicious behavior in real time, analyze large volumes of data, and adapt their defenses based on past incidents. Multi-factor authentication methods, including biometric verification and app-based login systems, have further boosted protection for both individuals and businesses.

Industry specialists highlighted that the rapid expansion of digital services - from instant payments to mobile-first banking - has created new risks, prompting UAE banks to adopt real-time fraud detection systems and secure, multi-channel communication channels that alert customers immediately to unusual activity. Some banks have also deployed intelligent digital assistants to manage fraud cases efficiently, while escalating complex issues to specialists.

Regulation has played a key role in accelerating this shift, with banks moving away from traditional SMS or email-based authentication toward more advanced app-based and biometric systems. Experts noted that future efforts will focus on behavioral biometrics and unified fraud prevention alerts across multiple channels to provide smoother, faster customer protection.

The UAE Banks Federation (UBF) has supported this transformation through initiatives such as the “Tasharuk” cyber threat intelligence sharing platform, launched in 2017, which enables banks to exchange information on cyberattacks and strengthen collective defenses across the sector.