To help financial organizations understand fraud detection, fintech journalists highlight key features of artificial intelligence tools
Back in June, we reported research by PYMNTS.com, that found only 5.5 percent of the 200 financial institutions they surveyed were using artificial intelligence (AI), and only half of those used it for fraud detection and prevention. We also know that payments and banking fraud is becoming more sophisticated and professional every day.
A recent online scan reveals that technology and financial journalists are very interested in the role of AI and machine learning in fraud detection. Chatbots improve customer service, AI profiling understands customers’ risk profiles, and AI tools provide information that enables fraud detection.
Payments Journal gives the example of Mastercard’s use of Brighterion as a strategic anti-fraud initiative. Brighterion AI enables Mastercard (and other financial organizations) to automate fraud detection and other risks. And with self-learning capabilities, Brighterion AI increases its efficiency and capabilities over time.
TechTarget takes this a little further, posting that AI for “fraud prevention and identity verification is vital.” In a recent article, TechTarget reviews various fraud tools, saying fraudsters are now taking a professional approach (think working Monday to Friday, 9-5) and are very skilled.
Currently, 74 percent of the top U.S. banks use Brighterion AI. That leaves one to wonder what’s holding back the remaining 26 percent? If it’s fear of the unknown, conducting research, meeting with vendors and engaging in POCs (Proofs of Concept) will allay those fears. By educating themselves, bankers, issuers and lenders can be better prepared to use technology to its highest and best purpose.
What’s your approach to fraud prevention? Is AI part of your toolkit?