When you hear of scams or fraud, you think about data being hacked and information being stolen. But sometimes it is data and technology that is responsible for catching fraud activity and culprits. Analytics Insight brought this topic to our attention in their article, “Top Use Of Artificial Intelligence And Machine Learning In Financial Scams.”

Because “machine learning” refers to analytic techniques that learn patterns in datasets without being guided by a human analyst, it can help data scientists efficiently determine which transactions are most likely to be fraudulent, while significantly reducing false positives.

Machine learning is like having several teams of analysts running hundreds of thousands of queries and comparing the outcomes to find the best result.

Although machine learning has the potential for improving fraud detection systems, it isn’t the only answer. Your anti-fraud strategy should still include some rules where it makes sense.

Melody K. Smith

Sponsored by Access Innovations, the intelligence and the technology behind world-class explainable AI solutions.