Anti-fraud technology with a human touch

Machine learning and artificial intelligence in bank fraud analytics continue to reduce fraud to prevent fraudulent activities from happening, however, in some ways trying not to block legitimate customer transactions.

A leader of Accenture’s North America financial crime practice and fraud Philippe Guiral made comments on this new technology.

He said that some banks started to invest in a cross-product as anti-fraud technology became more scalable and advanced. That means providing consumer data in domains within the system to gain more information in customer behavior to assess any particular suspicious transaction easily.

Many banks are now working on cases to show that these solutions can improve fraud prevention rates and enhance the customer experience. Experts can apply this in additional functions, including financial crime, risk, and customer intelligence. He added that all of this happens to uncover hidden dangers and discover new opportunities.

Senior director of fraud & identity at LexisNexis Risk Solutions in Alpharetta, Georgia, Kimberly White, also commented on these events. She said that it’s critical to have a robust fraud analytics solution that can provide banks with a comprehensive view of a user’s identity and insights into application activity. She added that they try to proactively prevent fraud by a risk-based, multilayered approach employing technology solutions.

Mitigating fraud 

The experts say that sometimes mitigating fraud seems more prudent, while ML and AI solutions are evolving in preventing fraud.

Lasher says that mitigation is also essential, while prevention seems like a critical goal. Banks are willing to strike a balance between customer experience and preventing fraud by decreasing false positives. He added that Banks have to establish consistency and trust with their loyal customers.

According to Borkar, humans are essential to review analytical results to decide what to do next. She added that, finally, experts should educate everyone in an organization on how to support fraud prevention while following the rules of their security teams.