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Use of Artificial Intelligence (AI) for Fraud Detection to Triple by 2021

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

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"A tectonic shift is happening in AI. Nearly 85 per cent of enterprises globally will use AI in some form or the other by 2020.

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.

AI
“We’re beginning to see the first instances of artificial intelligence operating as a mediator between humans, but it’s a question of: ‘Do people want that?” Pixabay

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.

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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. (IANS)

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India is Leading Mobile Ad Fraud in Asia: Report

Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem

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Asia
Major types of ad Fraud are cookie stuffing (74 per cent), adware traffic (65 per cent), data fraud (61 per cent) and ad injection (54 per cent), and the cases Have Been Increasing in Asia. Pixabay

India is leading mobile ad Fraud in Asia with a rate of 62 per cent as marketers are spending nearly 20 per cent of their advertising budget on ad fraud, a new report said on Monday.

Nine out of 10 marketers said there is scope for improvement in ad fraud prevention methods while 95 per cent respondents felt that lack of penalties and transparency in industry regulations give rise to ad fraud,” said the report titled ‘Ad Fraud Benchmark Report’ from global non-profit organization Mobile Marketing Association.

Major types of ad fraud are cookie stuffing (74 per cent), adware traffic (65 per cent), data fraud (61 per cent) and ad injection (54 per cent).

Only 37 per cent respondents are aware of Blockchain and its application to fraud prevention, said the report published in collaboration with a leading research firm Decision Lab.

Asia
India is leading mobile ad Fraud in Asia with a rate of 62 per cent as marketers are spending nearly 20 per cent of their advertising budget on ad fraud, a new report said on Monday. Pixabay

“In India, the awareness on ad fraud risks is very low with almost a fifth of the marketers being unclear of their ad fraud budget and majority of them believing that fraudulent activities will only increase,” said Moneka Khurana, Country Head, MMA India.

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“Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem,” Khurana added. (IANS)