One situation nobody wants to be stuck in is being a victim of a bank fraud. It is highly disturbing as our privacy is breached and money is stolen from our bank accounts.
Thus, the need for fraud detection in transactions came into picture. This process needs technologies such as Machine Learning and Artificial Intelligence to detect fraud based on previous transaction data.
Impersonation in financial frauds is commonplace. To reduce the occurrence of the same, facial and voice recognition modes can be used along with the traditional login process to ascertain that the right person is trying to make a transaction.
In the earlier days, fraud detection was done manually with people checking the personal data and transaction history of the customer. The process was tedious, time taking and prone to errors. With Artificial Intelligence and Machine Learning, the system can be automated by training it with huge data. It can adjust itself to the changing living standards and spending habits of the customers and not raise false alarms in case of a genuine spending.
AI/ML can thus be used to study the transaction history of customers and understand their spending habits. This helps the system flag a fraudulent transaction when a suspicious action is taken. Smart fraud detection will help banks reduce operational overhead and efforts and improve their reputation as a safe and secure place for people to keep their money.
AI in banking is already creating ripples in the banking sector by automating various important processes to better the experience for the end users. It is expected to further become more intelligent and keep the customers and the financial institutions happy.