Online fraud detection – can AI help?
It is an overwhelming feeling of how the world is connected today due to digitalization. Hence, it has become essential to create a safe and secure environment for people to operate without falling prey to cyberattacks or fraud. The growing utilization of eBanking and mobile banking facilities has enhanced the chance of money laundering and fraudsters damaging reputation and economic loss for individuals as well as organizations.
How AI helped in fraud detection?
Recent cases of fraud globally have evolved into more complex and sophisticated forms creating disruption and complete destruction of branding and image. Since cybercriminals are using AI and automation to accomplish fraud, hence the legacy predictive models are unable to detect and prevent such destruction. Thus, industry experts are of the opinion that AI should be utilized as the core of fraud detection and remediation in order to prevent it. The following are the requirements that can be met only through the implementation of AI in a business.
- AI can empower an organization to utilize the automation process to predict fraud. The method of automated fraud detection is quicker and more efficient than the manual approaches. This is time-saving and accurate. With enterprises becoming digital, the risk of data fraud also increases. Hence AI-based online fraud detection platforms equip the team of fraud analysts with extensive insight to identify and prevent fraud.
- Empowered by AI, data from both supervised and unsupervised machine learning algorithms can be combined to derive a conclusive determinant to identify fraud within the system.
- Tracking fraudulent activities is not simple especially when the data is on a large-scale. Businesses are adopting AI to analyze such large-scale transaction data acquired from customers globally.
The above-mentioned points confirm the requirement of AI in fraud detection and analysis. Also, in this aspect, the fine-tuning of the fraud prevention score deserves special mention. The unique platform Kount is visibly different from other online fraud detection platforms. It is because along with transactional data it can also include historical data acquired through multiple payment networks.
Benefits of implementing AI
According to secondary research, about 13% of organizations currently use AI to detect and prevent fraud. When AI is combined with predictive analytics, it helps to secure companies from online frauds and damaging their reputation. If we look at the insurance industry, with the involvement of AI the claim management process can become faster, better and more efficient. AI can also ensure effective damage evaluation and enhance the capability of predictive analysis.
Data processing empowered by AI can build a secure environment for consumers to enhance their reliability in the enterprise. Also, it will add value to the brand image of the company if it can showcase its fraud detection and prevention solution to its customer base. Although challenging, organizations globally are adopting AI to secure their environment through enterprise-level strategy, to ensure the enriched customer experience.
- Kathakali Basu