Use of AI to detect fraud set to triple by 2021

Use of AI to detect fraud set to triple by 2021

San Francisco, June 25 (IANS) As cyber criminals find new ways to exploit technology, a new survey has said that the use of Artificial Intelligence (AI) and Machine Learning (ML) for fraud detection globally would triple by 2021.

While only 13 per cent of organizations use AI and ML to detect and deter fraud, another 25 per cent plan to adopt such technologies in the next year or two — a nearly 200 per cent increase, revealed a global survey by the US-based Association of Certified Fraud Examiners (ACFE) with global analytics leader SAS.

“As criminals find new ways to exploit technology to commit schemes and target victims, anti-fraud professionals must likewise adopt more advanced technologies to stop them,” Bruce Dorris, President and CEO of the ACFE, said in a statement late Monday.

About one in four organizations (26 per cent) use biometrics as part of their anti-fraud programmes and another 16 per cent foresee deploying biometrics by 2021.

“More than half of organizations (55 per cent) plan to increase their anti-fraud tech budgets over the next two years,” the findings showed.

By 2021, nearly three-quarters of organizations (72 per cent) are projected to use automated monitoring, exception reporting and anomaly detection.

Similarly, about half of organizations anticipate employing predictive analytics/modeling (52 per cent and up from 30 per cent as of today) and data visualization (47 per cent from current 35 per cent).

The survey examined data provided by more than 1,000 ACFE members about their employer organizations’ use of technology to fight fraud.

The survey respondents hailed from 24 industries globally. The size of their employer organizations ranged from less than 100 employees to more than 10,000.

“The dramatic rise of AI, ML and predictive modeling reveals that, beyond the hype, advanced analytics is helping investigators keep steps ahead of increasingly sophisticated fraudsters,” said James Ruotolo, Senior Director of Products and Marketing for Fraud and Security Intelligence at SAS.

Texas-based ACFE is the world’s largest anti-fraud organization and premier provider of anti-fraud training and education.

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