Steven Schwartz: Why Most AI Security Solutions Fail to Prevent Fraud

Every few months, another company makes headlines for getting hacked. Customer data stolen, systems locked up, millions lost. The worst part? Most of these breaches trace back to the same problem – security systems that looked different on the surface but crumbled for the same reasons underneath. After a decade in fraud prevention, Steven Schwartz kept seeing this pattern repeat. Companies would stack up AI-powered security tools, thinking more layers meant better protection.

But they were missing something crucial: when all these tools share the same foundation, they share the same breaking point.

Identifying the Flaw in AI Security

Most companies looking for secure transactions and KYC solutions don’t realize they’re buying the same lock, just fitted to a different door. After years in the trenches of fraud prevention, Steven calls out what others won’t. “With new ‘AI solutions’ popping up every day, one common flaw stands out: Most of them rely on the same underlying source,” he says. Think about that for a minute. It’s like having different doors all using identical locks. As Steven puts it, “Essentially, they’re just branches of the same tree—if it falls, they all fall.” This isn’t just a technical problem – it’s a disaster waiting to happen.

Companies keep piling on new AI-powered tools, thinking they’re building stronger defenses. But if these tools all pull from the same root system, they’re not really spreading their risk. They’re just multiplying it.

Three Ways to Protect Your Tech Stack

The problem’s clear enough, but what can companies actually do about it? Steven breaks it down into three essential moves any business can make right now. Each one tackles a different angle of the security puzzle.

Step 1: Build Your Own Foundation

First things first: prioritize building your own solutions. “Use end-to-end software built internally wherever possible, avoiding reliance on third-party components or open-source frameworks that could introduce vulnerabilities,” Steven advises. It’s like building a house—you need to know exactly what’s in every brick. If third-party software is unavoidable, do your due diligence. Ensure it’s built as close to 100% internally by the vendor and isn’t layered with dependencies on other third-party components. Each additional layer adds potential vulnerabilities and reduces your control.

Step 2: Raise Your Standards

The threat landscape keeps evolving, getting more sophisticated by the day. Companies can’t afford to settle for security that was “good enough” last year. They need systems built to handle tomorrow’s attacks. “Make sure they meet the highest standards of compliance and security. If it’s not secure enough for government use, it’s not secure enough for you,” said Steven. That’s setting the bar pretty high, but in today’s world, anything less is asking for trouble.

Step 3: Future-Proof Your Security

The final piece of the puzzle? Think ahead. Way ahead. “Choose future-ready solutions like faceEsign, built entirely from scratch. Fully self-contained and proprietary,” Steven explains. This isn’t just about handling today’s threats – it’s about being ready for whatever comes next.

For Steven, building from scratch takes more time, more effort, and more resources. But it gives something valuable: reliability. When every piece of your security system is purpose-built, you’re not at the mercy of other companies’ decisions or mistakes. That’s exactly what Steven did with faceEsign. “Every line of code, process, and security layer is uniquely ours, designed to eliminate shared vulnerabilities that plague many off-the-shelf or ‘so called AI-powered’ platforms,” he notes.

This approach comes from seeing too many systems fail when convenience won out over security. Each compromise, each shortcut, creates another weak point. That’s why faceEsign took the harder road, building what Steven describes as “a patented solution built to tackle today’s digital challenges and tomorrow’s AI threats.”

Looking ahead, Steven highlights securing digital transactions, KYC processes, contract signing, and AI defense as shared challenges that call for collective action and industry-wide collaboration. “Let’s build a more secure digital world together,” he says. It’s not just about protecting individual companies anymore – it’s about raising the bar for everyone. Because in today’s connected world, one company’s weakness can become everyone’s problem.

To learn more about Steven Schwartz and faceEsign, check out his LinkedIn profile.

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