To fight residual credit fraud with maximum ROI and minimum effort, many companies are supplementing their existing systems with solutions based on artificial intelligence (AI) and Machine Learning (ML). According to a report published by the Association of Certified Fraud Examiners (ACFE) in 2019, two-thirds of credit institutions are expected to adopt these innovations in the months and years to come. Here are four reasons why you should do the same.
Source : Bleckwen – Fight Credit Fraud: 4 Reasons to Switch to AI
Reason n° 1 – Stay ahead of tech-savvy fraudsters
Every company adopts major technological developments at their own pace, according to their particular constraints, culture, and priorities. Fraud innovation, however, has only one pace: ultra-fast. Bolstered by cutting-edge technologies, fraudster tactics are increasingly complex, while remaining subtle and nimble, making them much more difficult to detect and defend against.
Credit institutions absolutely must invest in systems against these opponents, and leverage AI and ML if they do not want to find themselves out of the game. To protect themselves, credit institutions must invest in specially designed systems that leverage AI and ML to fight fraud.
Reason n° 2 – The benefits of the effect deterrent
Scammers are ROI experts. They tend to attack the most vulnerable systems that require the least amount of effort. However, in the world of organized crime, news travels fast. Identified flaws are exploited quickly and efficiently, with devastating impact.
The weakest link is exploited and suffers the financial and reputational costs. If your competitors switch to AI and fill in the gaps in their systems, you become the target of choice. Conversely, by adopting an effective anti-fraud AI, you quickly develop a reputation as a difficult target, which fraudsters naturally shy away from.
Reason n° 3 – Anticipate increasingly demanding regulations
Just as the Financial Action Task Force (FATF) recently decided to scrutinize the means and KYC processes of French banks in the fight against fraud, it is inevitable that the EU will legislate on the same means and processes in place to fight fraud, and in particular, to fight terrorism. The requirements for means and results will most surely involve AI services.
Companies that take the lead in adopting these tools and familiarizing themselves with the associated culture and processes will be in the best position to smoothly integrate and comply with these new regulations. Better still, this will have a great impact on their reputations.
Reason 4 – Open up new opportunities for the whole wompany
Last but not least, the ROI obtained through AI in the fight against fraud can encourage other services to adopt the AI and digital transformation on subjects more closely linked to core business (scoring, product placement, sales funnels, churn reduction, etc.). The whole company can benefit from the foundations laid by the adoption of AI in the fight against fraud by leveraging the data and processes that result from this pioneering project. There will be no need to start from scratch each time, the path will already be cleared.
Optimization of processes, performance gain, better results, competitive advantage…These are some of the ways your company can benefit from adopting tools based on expert AI such as Bleckwen Credit Fraud Services to fight fraud. Others did not wait. Now is the time to take the plunge.
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