By FintechNews Staff
-Banking and finance are regularly targeted by cyber hackers, so fraud detection is the area where artificial intelligence can increase the protection level.
-Account takeover and identity fraud cost financial institutions $16.9 billion in 2019 alone.
-With the help of AI to analyze data in real time, banks are able to identify suspicious activity and predict risk levels in-the-moment, in order to detect fraud as it is happening
-To prevent fraud, banks and other financial institutions are increasingly relying on sophisticated alternatives that combine Artificial Intelligence (AI) and Machine Learning (ML) technology. A solution like ML is capable of dealing with enormous amounts of data from several sources and knows what the normalized levels of activity are with regard to banking and other financial transactions. Consequently, it can alert the supervisor in case of any deviations from the expected trends.
-This kind of baseline could also be established for interactions with other banking operations or entities. In addition to account owners, fraud can come from merchants and issuers, and their transaction information can be used to train a machine learning model to recognize transactions processing properly.
– Information about devices, the geolocation of users, and even behavioral biometrics are playing the role of additional fuel for analytics.
To go deeper on these subjects:
–The state of cybersecurity in financial services
-Transforming Cybersecurity in the Financial Services Industry
-Addressing U.S. cybersecurity concerns through biometrics
