Many articles posted recently have noted the promising technological advances that aim to improve fraud detection in banking. However, some of these technologies may have launched too quickly, some should have still been in beta testing. Lansing, Michigan discovered that the automated system used to detect fraudulent unemployment claims has been wrongly accusing citizens. The system accused roughly 40,000 citizens between the years of 2013-2015 of which the state now must sort through individually. Though the system was originally thought to be an efficient solution to fraudulent claims, these faults will come at a great cost to the state. While this isn’t a very common occurrence across FIS systems, I think it is important to consider the rapid growth of the industry and look at some of the systems with a flicker of speculation. Testing of these systems must be robust in order for them to be confidently implemented and successfully executed. Though the testing can be expensive and timely, it could save major disasters such as this one from occurring and it’s far less expensive and timely than the consequences that come from a mistake in the system as large as this one.
http://www.beloitdailynews.com/article/20170128/AP/301289924