fraud has been an ongoing problem for quite some time now. Our technology may have become more sophisticated but so are criminals. It feels more secure now that we have several modes of verification but it’s still unsettling to see news of big companies like Facebook or Yahoo getting their data compromised.
fraud is not a small problem. The global cost of it is $4.2 trillion. But with technology like AI, we can expect identity to fraud to become less frequent. Well, up until criminals decide to come up with smarter strategies. But because AI is constantly learning, it’s only a matter of time before it can come up with solutions to fight against these new tactics.
The Association of Certified Fraud Examiners has talked in detail about the role of AI in their profession. Author Mason Wilder has written an article on this topic, which discusses the value of AI in both detecting and mitigating fraud.
Here are more ways that AI will be fighting identity fraud.
AI is smart in a sense that it doesn’t just analyze data at face value. For example, someone is trying to get into your account and have biometrics used as identification. It could be you or someone else, who knows. AI has to figure that out. So it looks into your past transactions and it sees that you’ve always logged in the morning at the same location. But this time, it shows you are logging in from a different location.
AI analyzes your past behaviors and uses that information to assess the risk of the current transaction you’re trying to make. So, what it does is ping the transaction, send a message to your email inbox of phone, and asks to verify a message.
Without AI, suspicious transactions like this can go through because ordinary banking systems don’t have the smart system to analyze customer’s data patterns and predict future outcomes.
