Artificial Intelligence is a technology that seems too good to be true. The concept of this technology seemed like a fictional Hollywood movie. Fast forward today, we have achieved and made use of AI in many sectors. Just like Jarvis in the Iron Man movie, we have Siri, Alexa, Bixby, and so many artificial assistants.

AI has come a long way and the advancement of this technology has learned human capabilities and performed better tasks. The technology is still developing and believed to achieve tremendous goals in a number of fields including fraud detection.

Fraud And Scam in Financial Sector

The Commercial Sector has been facing identity theft and fraud for a long time. The increase in online business has also increased online crime for them. But these frauds have more greatly impacted the financial sector.

Financial sectors, sad to say, have been the biggest victims of online financial frauds and scams. Cybercrime in this sector has caused billions of dollars of losses in the global economy. There are lots of crimes committed like credit card scams, card skimming,  ATO frauds, and much more. 

Market Opportunity created by Cyber Frauds

Fraudsters and Scammers are using advanced technology to harm financial intuition. In order to protect themself from becoming a victim, financial sectors are finding ways to upgrade their system which helps them prevent this cyberattack. The problem has produced an opportunity in the market for fraud detection systems. 

Companies are developing a fraud detection and prevention system that will allow them to find and provide solutions for identity theft or block any danger. The market is growing and demand is increasing because of the increased number of cybercrime. The market is expected to exceed $40 billion by the year 2023. 

Fraud Detection and Prevention Through Artificial Intelligence

Fraudsters are taking the help of AI and advanced tech to make fraud and steal from the financial sector. If it is the technology that causes the harm then it is the technology that will prevent and save the institute from this harm.

The AI-based model is implemented in the system to simply identify identity theft. The system also identifies any scam that can compromise financial data. As banks and financial institutions consist of huge amounts of customer data, their leakage can cause great harm for both businesses and customers.

Know Your Customer

Know Your Customer (KYC) verification is an AI-based identity verification software that helps businesses to verify their customers. Businesses are required to verify the identity of their end customer before enrolling him into their platform. This exercise protects them from fraudsters entering and doing scams.

Fraudsters are smart and they have the ability to manipulate a human eye which is why we need machine help. KYC verification can help financial sectors in verifying the individual entering into their business. The system requires a customer ID card, driving license, credit/debit card, and some other documents. All these documents are verified through document verification which identifies if the document provided is real or fake. 

Document Verification

Just like financial institutes, many other businesses are using document verification to identify the end customer. Businesses are required to ask for document information before enrolling their customers into the company’s online platform. 

Financial Sectors take this step further as their business is sensitive in nature and they can not take risks. They must take every step necessary to prevent themself from becoming a victim of fraud. Financial Institutes ask for more documents like passports, utility bills, previous financial records to make sure that their customer is authentic. 

All these files are run through the database available using artificial intelligence. The system scans and uploads the file and verifies document authentication. In case the documents proved to be fake, the system alerts the company of possible fraud intervention. 

Face Verification

Face Verification is another type of customer of verification which uses facial recognition to identify individuals. Face verification is one of the best ways to protect your business and verify the identity of your customer. 

It requires capturing an image of a face and then storing it in the database. The program identifies the face by 80 noodle facial points and stores it. When the face is presented to the system, an artificial intelligence system captures the face and runs it through the data stored in the database to match the information. 

Many financial institutions and banks use face verification to verify the customer. Customers are allowed to enter the company’s online platform if only the AI matches the face of the customer with the data stored in its database.

Author Bio

I’m James Watson and I am a contributor and technical content writer. I have written some articles for my readers which include Artificial Intelligence, Machine Learning, Cyber Security, Fintech, Crypto, Finance and Business, etc.