(Credit: George Iordanov-Nalbantov)

The Bank of Scotland-owner’s AI fraud agent was developed by fraud, technology, data and risk specialists using Envoy, Lloyds’ secure AI platform.

During customer calls, multiple AI agents operate simultaneously behind the scenes, performing identity checks, transaction analysis and scam risk assessments in real time. Staff remain fully accountable for outcomes and retain the ability to override AI suggestions.

Launched in May and powered by Google Cloud, Envoy allows teams to train, use and share AI agents securely and responsibly. The platform provides ready-to-use templates for building agents tailored to specific problems, which can then be reused and shared across the organisation through an internal agent marketplace.

Ron van Kemenade, Group COO at Lloyds Banking Group, says: “AI is now integrated across our organisation and is transforming how we operate and serve customers.

“Our ongoing investment keeps Lloyds Banking Group ahead in responsible tech adoption within financial services.”

A new Scam Check tool will shortly be embedded across Bank of Scotland, Lloyds, and Halifax accounts. When a customer attempts to pay someone new for an online purchase, the tool may present a few simple questions and ask the customer to upload screenshots of the item.

Using machine learning and image analysis, Scam Check looks for recognised scam indicators and issues tailored warnings when a risk is identified, helping customers make informed decisions before completing a payment.

Tom Martin, business platform lead for economic crime prevention at Lloyds, said: “Fraud is increasingly fast-moving and complex, so our focus is on responsibly applying AI in a way that genuinely helps customers, without delaying prevention.

“By combining agentic AI with human oversight, we can create an invisible forcefield around our customers, monitoring risk in real time and stepping in only when it matters.”