Artificial Intelligence and Financial Fraud

With loads of sensitive information at stake, financial institutions are a large target for those looking to commit financial and identity fraud crimes. However, there is a rising tool that these institutions may soon be able to employ to help catch fraudsters in the act: Artificial Intelligence. AI has long been considered useful for a wide array of unique application, however, the concept of using artificial intelligence to detect criminal patterns is new in thought.

One of the new tools being rolled out by the payment company, MasterCard, is called Decision Intelligence. This tool allows payment companies to analyze transactions on a real-time basis, allowing companies to combat fraud on the front lines. A core aspect of artificial intelligence in the concept of pattern recognition, something that the payment companies and financial institutions are looking to take advantage of in order to autonomously flag transactions that seem suspicious. This tool will also reduce the number of “false events” which are triggered when an authentic transaction is flagged as suspicious and the customer’s card is declined.

As more and more banks and financial institutions begin to invest in autonomous and artificial intelligence driven fraud detection systems there will be in immense change in how society finds and catches criminals and may even raise the debate for preemptive actions.