Home Cyber “Use of Artificial Intelligence for fraud detection set to triple by 2021” asserts SAS

“Use of Artificial Intelligence for fraud detection set to triple by 2021” asserts SAS

by Brian Sims

While only 13% of organisations use Artificial Intelligence (AI) and machine learning to detect and deter fraud, another 25% plan to adopt such technologies in the next year or two. This represents a nigh on 200% increase. Fraud examiners reveal this and other anti-fraud tech trends in a cross-industry global survey conducted by the Association of Certified Fraud Examiners (ACFE) and developed in collaboration with analytics leader SAS.

The inaugural Anti-Fraud Technology Benchmarking Report examines data provided by more than 1,000 ACFE members about their employer organisations’ use of technology to fight fraud. Other notable trends include:

The rise of biometrics About one-in-four organisations (26%) use biometrics as part of their anti-fraud programmes, while another 16% foresee deploying biometrics by 2021

Increasing budgets More than half of organisations (55%) plan to increase their anti-fraud tech budgets over the next two years

Changing data analysis techniques By 2021, nearly three-quarters of organisations (72%) are projected to use automated monitoring, exception reporting and anomaly detection. Similarly, about half of organisations (52%, up from 30%) anticipate employing predictive analytics/modelling and data visualisation (47%, currently 35%).

“As criminals find new ways in which to exploit technology to commit schemes and target victims, anti-fraud professionals must likewise adopt more advanced technologies to stop them,” said Bruce Dorris, president and CEO of the ACFE. “Which technologies, though, are most effective in helping organisations manage rising fraud risks? The answer to this question can be crucial in successfully implementing new anti-fraud technologies.”

Dive deeper online

Complementing the benchmarking report, SAS’ online data visualisation tool allows users to analyse survey data by industry, geographic region and company size. Survey respondents hail from 24 industries – most notably banking/financial services (21%) and Government/public administration (17%) – and span the globe. The size of their employer organisations ranges from less than 100 employees to more than 10,000.

“The tools available for fraud prevention are now more intelligent than ever,” explained Laurent Colombant, continuous controls and fraud manager at SAS. “We’re no longer restricted to merely reacting to fraud after it happens. With the right AI-enabled tools in place, anti-fraud teams can now begin to intelligently predict potential danger spots and flag up early warning signs to ensure efforts are co-ordinated and effective. The emergence of AI, machine learning and predictive modelling is helping investigators to pre-emptively detect fraudulent activity, allowing them to stay ahead of the increasingly sophisticated techniques being employed by criminals.”

*The Anti-Fraud Technology Benchmarking Report debuted at the 30th annual ACFE Global Conference at which more than 3,000 fraud-fighting professionals convened in Austin, Texas. The report’s supporting sponsors include Intel and Capgemini

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