The effects of fraud can be devastating on both individuals and organizations. Companies can suffer irreversible damage to reputation and be forced to close, and individuals can experience significant personal losses. Everyone should be aware of the risks and take steps to protect themselves against fraudulent activity.
Fraud Detection Technology
Fraud detection technology has advanced rapidly, over the years and made it easier for security professionals to detect and prevent fraud. Here are some of the key ways that Artificial Intelligence (AI) is revolutionizing fraud detection - with insight from Tessema Tesfachew, the Head of Product at Avora.
An anomaly can be described as a behavior that deviates from the expected. According to Tessema Tesfachew, “Autonomous monitoring and anomaly detection specifically, have made detecting fraudulent activity faster and more accurate. Machines can monitor data 24/7 as it comes in, build patterns of behavior that take into account seasonality and shifting trends, and identify events that don’t fit the norm.”
For example, banks can use AI software to gain an overview of a customer’s spending habits online. Having this level of insight allows an anomaly detection system to determine whether a transaction is normal or not. Suspicious transactions can be flagged for further investigation and verified by the customer. If the transaction is not fraudulent, then the information can be put into the anomaly detection system to learn more about the customer’s spending behavior online.
Accurate Root Cause Analysis
Root cause analysis goes one step further than anomaly detection, by allowing security professionals to pinpoint what caused the anomaly. Tessema explains how an example of this would be if a system detects that the rate of fraudulent transactions has increased.
Root cause analysis would pinpoint the specific ATM or point of sale, where this increase is occurring. Swift action can then be taken to prevent fraudulent activity at that location in the future.
Continue reading: https://www.securityinformed.com/insights/ai-revolutionising-fraud-detection-co-1619680890-ga.1619681736.html?utm_source=SSc%20International%20Edition&utm_medium=Redirect&utm_campaign=International%20Redirect%20Popup
Fraud Detection Technology
Fraud detection technology has advanced rapidly, over the years and made it easier for security professionals to detect and prevent fraud. Here are some of the key ways that Artificial Intelligence (AI) is revolutionizing fraud detection - with insight from Tessema Tesfachew, the Head of Product at Avora.
An anomaly can be described as a behavior that deviates from the expected. According to Tessema Tesfachew, “Autonomous monitoring and anomaly detection specifically, have made detecting fraudulent activity faster and more accurate. Machines can monitor data 24/7 as it comes in, build patterns of behavior that take into account seasonality and shifting trends, and identify events that don’t fit the norm.”
For example, banks can use AI software to gain an overview of a customer’s spending habits online. Having this level of insight allows an anomaly detection system to determine whether a transaction is normal or not. Suspicious transactions can be flagged for further investigation and verified by the customer. If the transaction is not fraudulent, then the information can be put into the anomaly detection system to learn more about the customer’s spending behavior online.
Accurate Root Cause Analysis
Root cause analysis goes one step further than anomaly detection, by allowing security professionals to pinpoint what caused the anomaly. Tessema explains how an example of this would be if a system detects that the rate of fraudulent transactions has increased.
Root cause analysis would pinpoint the specific ATM or point of sale, where this increase is occurring. Swift action can then be taken to prevent fraudulent activity at that location in the future.
Continue reading: https://www.securityinformed.com/insights/ai-revolutionising-fraud-detection-co-1619680890-ga.1619681736.html?utm_source=SSc%20International%20Edition&utm_medium=Redirect&utm_campaign=International%20Redirect%20Popup
