By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
    analyst,women,looking,at,kpi,data,on,computer,screen
    Promising Benefits of Predictive Analytics in Asset Management
    11 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: AI the Perfect Solution to the Identity Fraud Epidemic
Share
Notification Show More
Latest News
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
ai in omnichannel marketing
AI is Driving Huge Changes in Omnichannel Marketing
Artificial Intelligence
ai for small business tax planning
Maximize Tax Deductions as a Business Owner with AI
Artificial Intelligence
ai in marketing with 3D rendering
Marketers Use AI to Take Advantage of 3D Rendering
Artificial Intelligence
How Big Data Is Transforming the Maritime Industry
How Big Data Is Transforming the Maritime Industry
Big Data
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > Artificial Intelligence > AI the Perfect Solution to the Identity Fraud Epidemic
Artificial IntelligenceExclusivePrivacyRisk Management

AI the Perfect Solution to the Identity Fraud Epidemic

Matt James
Last updated: 2019/12/18 at 4:57 PM
Matt James
5 Min Read
AI is solution to identity theft protection
Shutterstock Licensed Photo - By Vitaly Art
SHARE

Fraud has been an ongoing problem for quite some time now. Our technology may have become more sophisticated but so are criminals. It feels more secure now that we have several modes of verification but it’s still unsettling to see news of big companies like Facebook or Yahoo getting their data compromised.

Contents
1. Identifying Behavior Patterns2. Preventing Mass Fraud3. Detect Fraud from Previous Data4. AI Does All the Heavy Lifting5. Faster SecurityWhat is the Future of AI in Fraud Prevention

Fraud is not a small problem. The global cost of it is $4.2 trillion. But with technology like AI, we can expect identity to fraud to become less frequent. Well, up until criminals decide to come up with smarter strategies. But because AI is constantly learning, it’s only a matter of time before it can come up with solutions to fight against these new tactics.

The Association of Certified Fraud Examiners has talked in detail about the role of AI in their profession. Author Mason Wilder has written an article on this topic, which discusses the value of AI in both detecting and mitigating fraud.

Here are more ways that AI will be fighting identity fraud.

More Read

ai for small business tax planning

Maximize Tax Deductions as a Business Owner with AI

3 Ways AI Has Helped Marketers and Creative Professionals Streamline Workflows
Fortifying Enterprise Digital Security Against Hackers Weaponizing AI
10 Ways How Artificial Intelligence Is Changing the Content Writing Landscape
Use this Strategic Approach to Maximize Your Data’s Value

1. Identifying Behavior Patterns

AI is smart in a sense that it doesn’t just analyze data at face value. For example, someone is trying to get into your account and have biometrics used as identification. It could be you or someone else, who knows. AI has to figure that out. So it looks into your past transactions and it sees that you’ve always logged in the morning at the same location. But this time, it shows you are logging in from a different location.

AI analyzes your past behaviors and uses that information to assess the risk of the current transaction you’re trying to make. So, what it does is ping the transaction, send a message to your email inbox of phone, and asks to verify a message.

Without AI, suspicious transactions like this can go through because ordinary banking systems don’t have the smart system to analyze customer’s data patterns and predict future outcomes.

2. Preventing Mass Fraud

In the past, hackers would be able to perform mass breaches on a number of accounts. They’re still able to do that now but it’s getting harder as more institutions employ AI into their systems. This goes in line with the previous point. It’s hard to fool AI because it pins a suspicious transaction in its tracks. When done in huge numbers, it only alarms the AI and stop it even without human intervention.

3. Detect Fraud from Previous Data

We mentioned how AI is able to use past data to predict future behaviors. As an institution, if you want your AI system to thrive, you should be feeding it more data. This can be done by letting it analyze millions of previous customer data. By doing this, it can find possibly fraudulent transactions that have happened in the past. This points you in the direction of customers who you may have to be removed from your system. It also makes your AI smarter as they use that information, they just processed to successfully decline customers that may be high-risk.

4. AI Does All the Heavy Lifting

Normally, it would take days, even months, to go through customer data. This is true especially for businesses that manage more than a hundred customers. If you’d like to scale your business and enjoy the same fraud protection, AI is the best solution

AI is able to process huge amounts of data. This means you and your team don’t have to use all those resources sifting through data. Instead, spend that time on tasks that require more critical thinking. With AI, you can maintain the security of your many customers, and grow your business without the added cost.

5. Faster Security

The promise of better security often translates to longer, more tedious transactions. However, that is not true with AI. Because it is a smart machine, it doesn’t take that long to process your regular transactions. It’s able to process data quickly, cross verify customer data with the database, and proceed with doing the transaction.

What is the Future of AI in Fraud Prevention

What are your thoughts about using AI to fight against fraud? Share your thoughts in the comments below.

TAGGED: AI, artificial intelligence, identity fraud protection, identity theft
Matt James December 18, 2019
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
By Matt James
Matt James is a veteran marketer & tech geek that has helped many large brands increase their online footprint. He specializes in influencer outreach and business growth.

Follow us on Facebook

Latest News

ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
ai in omnichannel marketing
AI is Driving Huge Changes in Omnichannel Marketing
Artificial Intelligence
ai for small business tax planning
Maximize Tax Deductions as a Business Owner with AI
Artificial Intelligence
ai in marketing with 3D rendering
Marketers Use AI to Take Advantage of 3D Rendering
Artificial Intelligence

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

ai for small business tax planning
Artificial Intelligence

Maximize Tax Deductions as a Business Owner with AI

9 Min Read
3 Ways AI Has Helped Marketers and Creative Professionals Streamline Workflows
Artificial Intelligence

3 Ways AI Has Helped Marketers and Creative Professionals Streamline Workflows

6 Min Read
Digital Security From Weaponized AI
Security

Fortifying Enterprise Digital Security Against Hackers Weaponizing AI

11 Min Read
AI-powered content writing tools
Artificial Intelligence

10 Ways How Artificial Intelligence Is Changing the Content Writing Landscape

8 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?