Why AI is MIA in most FI Fraud Departments

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06/04/2019

Why AI is MIA in most FI Fraud Departments

PYMNTS.com

In the old days, forged checks were the biggest problems that bank fraud departments had to manage. Today, financial institutions (FIs) face a barrage of cyberattacks from hackers operating around the world, continuously shifting their tactics. It is no wonder that fraud prevention is one of the problem areas that FIs hope artificial intelligence (AI) can help resolve.

AI systems are unique, can process large volumes of data in real time and can “learn” to quickly identify suspicious financial activity. Yet, few FIs leverage this technology in their anti-fraud efforts — only 5.5 percent of them have adopted true AI systems. Instead, FIs’ anti-fraud departments tend to use less-sophisticated learning systems, like data mining and business rule-management systems (BRMS). What’s more, only 12.5 percent of fraud specialists use AI, while 92.5 percent use data mining and 65 percent user BRMS.

So, what is keeping so many fraud departments from investing in the technology they need to help fight cyber fraud?

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