Most organizations rely on teams of human analysts to examine transactions when looking for any type of fraud. This is true for financial organizations, healthcare organizations, etc. However, due to the numerous records, this can be an onerous task. This interesting topic came to us from Gulf News in their article, “How AI and machine learning can turn the tide of fraud.”

For example, 45 per cent of banks say their investigations take too long to complete and 40 per cent say the investigations result in a high number of false positives.

This is where artificial intelligence (AI) and more specifically, machine learning are overcoming these stumbling blocks. Detection systems driven by AI offer fraud prevention benefits because they can analyze transactions holistically, comparing each data point within a transaction to every other data point in fractions of a second.

A more advanced form of AI, machine learning takes past transactions into account and apply these rules to future analyses to detect financial crime, making them gradually more adept at fighting fraud over time.

Melody K. Smith

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