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Using Technology in FinTech to Fight Fraud

March 23, 2023 / Melody Smith / Comments Off on Using Technology in FinTech to Fight Fraud

Internet fraud continues to be a menace in society, especially in healthcare and financial institutions. Many fintech companies have been victims of fraud. Detection of these attacks comes via two paths: through inconsistent traditional methods or using ever-growing artificial intelligence (AI) mechanisms. Entrepreneur brought this interesting information to us in their article, “How AI and Machine Learning Are Improving Fraud Detection in Fintech.”

Traditional methods, such as the rule-based method, are still widely used by most fintech companies in contrast to AI. Some companies are adjusting, however, by leveraging machine learning and AI, greatly improving their chances of detecting fraud.

Some of the potential solutions to fintech fraud issues are obvious and available today. Once addressed industrywide, fintech can access a seemingly endless set of features, functions, and benefits. Instead of constantly being one step behind, fintech companies can actively foresee fraud using AI and machine learning techniques and thereby safeguard their financial integrity.

Understanding the technology will be key. Most organizations have little knowledge of how AI systems make decisions, so they are ill-prepared to apply any results they obtain from these technologies. Explainable AI allows users to comprehend and trust the results and output created by machine learning algorithms. Why is this important? Because explainability becomes critical when the results can have an impact on data security or safety.

Data Harmony is an award-winning semantic suite that leverages explainable AI.

Melody K. Smith

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

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Melody Smith

Melody K. Smith has provided organizational, social media and digital communication services to a large non-profit for the past twenty years. Prior to that she championed employee engagement and communications in the healthcare field. She holds a Bachelors degree in Marketing. When not wrangling and writing TaxoDiary content for your reading pleasure, Melody writes fiction, rescues dogs and throws legendary dinner parties.