In your opinion, what are the ways artificial intelligence (AI) can be used for fraud detection? Are there any disadvantages of AI use for this purpose?
AI is being used by government and private organizations to detect unusual patterns. For example, insurance companies can detect patterns of unusual claims and detect fraudulent activity.
Dear colleagues, thank you very much for getting this discussion off to a great start , Sajda Taha Mahmood , Emad Kamil Hussein .
The answer to your question is"Yes". Please have a look at the following RG links.
Article An Artificial Intelligence Approach to Financial Fraud Detec...
Article Employing Artificial Intelligence To Minimise Internet Fraud
Conference Paper Uses of artificial intelligence in the Brazilian customs fra...
Article The benefits of using artificial intelligence in payment fra...
Yes, it can especially when the detection parameter is specific
Can artificial intelligence be used for fraud detection?
Yes it can & it has been used for fraud detection. You can also refer to the following links:
https://www.forbes.com/sites/theyec/2018/06/04/artificial-intelligence-and-the-future-of-financial-fraud-detection/#45edd61f127a
https://www.fico.com/blogs/analytics-optimization/5-keys-to-using-ai-and-machine-learning-in-fraud-detection/
https://www.marutitech.com/machine-learning-fraud-detection/
https://www.bankinfosecurity.com/webinars/how-to-fight-fraud-artificial-intelligence-intelligent-analytics-w-409
Are there any disadvantages of AI use for this purpose?
Not sure is a disadvantage but the use of AI / ML / AutoML / Deep Learning etc. still can prompt hacker to study new way or means to avoid fraud detection. So we need to continuously seek improvement on newer AI technologies to curb further fraud detection avoidance.
Yes
Artificial Intelligence by investigating agencies protect system against cyber crime.
'Fraud' definition may be any activity not accepted by supreme law of country.
In India certain inherent rights are guaranteed to citizens and any activity implicitly or explicitly via penetration of individuals:
1. 'Privacy'
2. 'Liberty'
3. 'Autonomy'
4. 'Life'
5. 'Conscience'
may be 'Fraud' and one of the main reasons of psychological stress in society.
Very impressive discussion that provoked valuable and challenging comments from our RG colleagues
It helps data scientists efficiently determine which transactions are most likely to be fraudulent, while significantly reducing false positives. The techniques are extremely effective in fraud prevention and detection, as they allow for the automated discovery of patterns across large volumes of streaming transactions.
There are a number of promising innovations, including the ability to look at rich data previously excluded from fraud detection, such as photographs, video and translated audio, that are revolutionising fraud prevention, and with AI tools these tasks can be conducted faster, more efficiently and more precisely than before.
Read more in detail on following source link
https://www.raconteur.net/risk-management/artificial-intelligence-fight-fraud
The financial services industry has witnessed considerable hype around Artificial Intelligence (AI) in recent months. We’re all seeing a slew of articles in the media, at conference keynote presentations and think-tanks tasked with leading the revolution. AI indeed appears to be the new gold rush for large organisations and FinTech companies alike. However, with little common understanding of what AI really entails, there is growing fear of missing the boat on a technology hailed as the ‘holy grail of the data age.’ Devising an AI strategy has therefore become a boardroom conundrum for many business leaders.
How did it come to this – especially since less than two decades back, most popular references of artificial intelligence were in sci-fi movies? Will AI revolutionise the world of financial services? And more specifically, what does it bring to the party with regards to fraud detection? Let’s separate fact from fiction and explore what lies beyond the inflated expectations.
Why now?
Many practical ideas involving AI have been developed since the late 90s and early 00s but we’re only now seeing a surge in implementation of AI-driven use-cases. There are two main drivers behind this: new data assets and increased computational power. As the industry embraced big data, the breadth and depth of data within financial institutions has grown exponentially, powered by low-cost and distributed systems such as Hadoop. Computing power is also heavily commoditised, evidenced by modern smartphones now as powerful as many legacy business servers. The time for AI has started, but it will certainly require a journey for organisations to reach operational maturity rather than being a binary switch.
Sundeep Tengur , Artificial Intelligence for fraud detection; beyond the type ,London, 2018.
Yes Banking Tracking and Monitoring system for Money Laundering Frauds and Drug or Corruption Black Money is tracked by Computers and smart Banking Softwares. Artificial Intelligence is a subject of Computer Science aimed at building machines and computers that can enhance logical operations. AI systems have the ability to execute tasks naturally associated with human intelligence, like speech recognition, decision-making, visual perception, and translating languages. Artificial Intelligence would have a low error rate compared to humans, if coded properly. They would have incredible precision, accuracy, and speed. They won't be affected by hostile environments, thus able to complete dangerous tasks, explore in space, and endure problems that would injure or kill us.
Regards
There is not a better way than using artificial intelligence for fraud detection and it is already used in many fields.
Although detecting cybercrime usually requires knowing the nature of the crime you are looking for, artificial intelligence can be discovered better than humans. Artificial intelligence monitors patterns of behavior that humans can not observe, and can intervene to stop suspicious activity before it is out of control.
Physcars has developed an artificial intelligence system that can monitor any unexpected changes in data as they occur, and then use the information from previous experiences to predict the likely cause of these changes. Often, the reason is that some people do things they can not do.
I am a big fan of software automation , all I can say is on how fraud is modelled !!!
The critical feature is decision making so it depends how well planned the "fraud" is , so can we detect all sorts of frauds or will it be considered as another transaction is a performance issue .
On the face of it - I would say , it can .
Yes, artificial intelligence can be surely used for fraud detection. This can be used for identifying the thiefs, in banking sector to identify fraud transactions, in road, rail and air travel, who are misusing the tickets etc. This is a really a worth and must, if they are more number of people in which an individual put to check cannot identify the fraud. Now a days the artificial intelligence is used in many ways to do precisely and accurately and make the work easier and comfortable.
Dear Arvind Singh , Segun Michael Abegunde , Mala Babagana Gutti , M. A. A. Al- Fatlawi , thank you for your contribution to this discussion.
These are great additions to this discussion, thanks Abderrahim Benkhaled , Carine Temegne Nono , Pisipaty Srinivas Kishore
Yes , artificial intelligence (AI) is used in many situations like banking , internet , customs taxes etc... to detect fraud manipulations.
Yes, it is already being extensively used for fraud detection.....
My answer to the main question of the discussion thread is yes, in agreement with the colleagues. I quote from an interesting article: One of the most effective methods of keeping fraudsters at bay is staying up to date with the latest technologies and there are few areas of technological innovation more exciting than artificial intelligence (AI). It's true that we are still a long way off developing true AI, but the developments that have occurred in this field are already offering great potential for financial institutions. For more, you may visit https://www.businessinsider.com/could-ai-be-the-ultimate-weapon-in-the-fight-against-fraud-2017-1.
Regards
Yes indeed dear Dr. Gulzar Shah . The expertise in the area are dealing on it and are progressing a lot. Let me share you some of the promising cotes concerning the use of AI in fraud detection.
Stuart Aston, The national security officer of Microsoft UK said that, “Artificial intelligence is befitting fighting fraud because it picks up on patterns and irregularities that humans can’t naturally perceive,” moreover, he added that “There are a number of promising innovations, including the ability to look at rich data previously excluded from fraud detection, such as photographs, video and translated audio, that are revolutionising fraud prevention, and with AI tools these tasks can be conducted faster, more efficiently and more precisely than before,” .
Souece: https://www.raconteur.net/risk-management/artificial-intelligence-fight-fraud
As far as my views are concerned , I think it will be controlled by one elite group for fool entire world.Hence no such detection can be expected.
Dear colleagues thank you for sharing your thoughts making this discussion valuable. Syed Asad Ali Zaidi , Amir W. Al-Khafaji , Nadeem Ahmad Khan
The use of artificial intelligence for fraud prevention is not a new concept, and it's not the stuff of science fiction, according to its proponents. In fact, AI solutions can be used to enhance security across a number of business sectors...
Dear Dr. Gulzar Shah,,
Yes, artificial intelligence can be used for fraud detection, but not for all.
With regards.
Artificial intelligence is already in use in all areas including security.
Thank you for your thoughts and insights, Segun Michael Abegunde , Alaa Jabbar Al-Manhel , Yehya A. Salih , Asmaa Abdulkareem , Omar Al-Khashman
, Djaafar Zemali .
May be useful to look at this link:
https://www.forbes.com/sites/theyec/2018/06/04/artificial-intelligence-and-the-future-of-financial-fraud-detection/#20d48250127a
Thank you for excellent additions colleague! Afkar Hadi , Yu-Da Lin , Zainab J. Khudhair , Isam Issa Omran .
Artificial intelligence is used in all areas including security.
Machine learning helps data scientists efficiently determine which transactions are most likely to be fraudulent, while significantly reducing false positives. The techniques are extremely effective in fraud prevention and detection, as they allow for the automated discovery of patterns across large volumes of streaming transactions.
Thank you colleagues for your valuable contributions, Djaafar Zemali , Omar Al-Khashman
, Abderrahim Benkhaled
Yes, artificial intelligence is and can be used for fraud detection. Practically society people intelligence is drastically increasing day by day, so there should be a process to identify fraud detection and also there is a need for technology improvement.
Hence artificial intelligence is useful.
Artificial intelligence is used in many areas include security.
AI is playing a lot of positive roles, including fraud detection in many industries, inuding medical and auto insurance. Thank you all for making it an informative discussion.
The algorithm should b developed very carefully, as any errors in methodology will cause irrelevant results.
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