Fraud is a growing problem for businesses, costing them an average of 5% of their revenue each year, according to the Association of Certified Fraud Examiners (ACFE). In 2021, the US Federal Trade Commission received up to 5.74 million fraud reports, up from 4.87 million in the previous year. As artificial intelligence (AI) technology becomes more widespread, experts predict that fraud attempts will increase significantly.
Identity fraud, Business Email Compromise(BEC), account takeovers are some of the various forms of fraud that can be carried out using several threat vectors. As AI technology is becoming more accessible to anyone on the internet, cybercriminals are already using AI-powered tools to create sophisticated attacks, making it harder for businesses to protect themselves.
To fight back, businesses need to use AI for fraud detection as part of their risk management strategies. AI can help businesses by providing top-notch tools that can monitor and spot fraud in real-time, reduce false positives, and adapt to new fraud techniques.
Here are five AI-powered tools for fraud detection and prevention:
Defend: This is an AI-powered identity fraud detection tool from Proof. Defend is specifically built to detect traditional forms of identity fraud as well as new types of fraud such as synthetic identities and deepfakes by monitoring electronic transactions. Proof Defend checks every transaction using sophisticated AI-models. It monitors IDs, video calls for deepfakes, and scans thousands of other behaviors. It then sends real-time alerts to businesses about any suspicious activity and insight into their document.
Fraud.net: This platform uses deep learning and neural networks to provide real-time risk scores for every event on a scale of 1-99. This result helps businesses identify which factors are driving their models’ risk scores. With its robust AI capabilities, it can automatically approve low-risk activities and cancel high-risk ones, reducing the number of cases fraud analysts manually review. Fraud.net can also identify subtle fraud patterns that might be missed by human eye.
Onfido Verification Suite: The fraud detection model is one of a series of tools Onfido uses in its identity verification. This tool helps prevent money laundering, synthetic fraud and account takeover without disrupting the user’s experience. It uses AI-powered repeat fraud detection technology to adapt to real-world scenarios and stop attacks in progress.
Constella.ai: This AI-powered tool specializes in finding identity risks by looking at information from a vast pool of deep and dark web intelligence. It helps businesses check their employees, other businesses they work with, and their suppliers. It provides insights like synthetic and fake Identity scores and malicious risk scores which tells how likely an identity is to be fake or involved in criminal behavior.
Datavisor: This is an AI-powered end-to-end fraud and risk SaaS platform designed for financial institutions and large organization to combat a variety of fraud and financial crimes in real time. Datavisor claims to improve fraud detection by up to 20 times compared to older methods. It offers predictive analytics for actionable insights that revolutionizes decision-making processes.
It’s crucial for businesses to make fraud detection a top priority. By using well-designed AI-powered systems, companies can greatly reduce their risk of falling victim to fraud. Timely detection of fraud not only protects the businesses but also saves money in the long run. As both criminals and security experts continue to use AI, it’s important for businesses to stay up-to-date with the latest fraud detection tools. This will help them stay one step ahead of the criminals and keep their operations safe and secure.
About the author:
