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Fraud Losses From Impersonator Scams Double For Largest US Banks
Financial institutions (FIs) have generally found fraud and financial crime to be continually more sophisticated. The rise of digital banking and ever-faster digital payment methods have accelerated this phenomenon. As a result, banks have had to elevate their systems and processes to find ways to stem the growth in fraudulent transactions — and the resulting uptick in financial losses.+
FIs are increasing investments and deployments of machine learning (ML) and artificial intelligence (AI) to combat growing fraud. Forty-eight percent of FIs are adding or will add new technology in the next year — especially the largest banks. FIs using these technologies already recognize them as powerful tools in stemming fraudulent transactions. Those currently using ML or AI technologies suffered, on average, 30% fewer transactions that resulted in fraud losses in the last 12 months than those that do not use these technologies.