AI-driven fintech bodes ill for online swindlers

Jun 05, 2018, 8:04 AM EDT
(Source: Surian Soosay/flickr)
(Source: Surian Soosay/flickr)

The burgeoning volume of financial transactions online is accompanied by a proportionately increasing rate of fraud, which currently wipes out approximately $600 billion from global economy according to a report by security company McAfee.

Artificial intelligence could prove to be a potent fraud detection tool with its predictive algorithms, for example by matching a customer and their credit card behaviour pattern and flagging any transaction that appears inconsistent with set lines, notes Forbes.

Fintech institutions can employ supervised and non-supervised machine learning systems to glean a wide variety of data points to detect anomalous user behaviour, and more importantly, these systems learn and adapt in the process to accommodate changing patterns in activity over time, reports ET Tech.