Artificial Intelligence provides more power to fight financial crime

Today’s fraud challenges are emerging in real time at the hands of more sophisticated criminals. That puts financial institutions in a tough position, tasked with devoting more time and resources to ensuring security while trying to deliver a frictionless customer experience. However, advancements in artificial intelligence (AI) are already easing the burden – and creating a more promising outlook for the future.

Using data analytics to detect fraudulent activity is not a new concept. Credit card companies, financial institutions and others have been using behavioral and predictive analytics to reduce risk and fraud for years. Emerging AI technologies take these capabilities to a new level, using greater automation, unsupervised learning and more sophisticated algorithms to strengthen fraud prevention.

Machine learning is a particularly promising element of AI, because it enables solutions to build on previous knowledge and evolve to face new fraud threats without being expressly programmed to do so. As these capabilities continue to advance, AI systems could be fine-tuned to deliver the best response for any situation, providing a higher level of security with fewer disruptions to the customer experience.

continue reading »