AI fraud detection set to triple by 2021

In a new study from the Association of Certified Fraud Examiners (ACFE), it is predicted by 2021 that the use of AI fraud detection will triple. 

In the Anti-Fraud Technology Benchmarking Report, it was identified that 13% of organisations use artificial intelligence (AI) and machine learning as a method of detecting and/or deterring fraudulent activity, with a quarter of organisations planning to do so in the coming year. 

It was also identified that as part of their anti-fraud programs, 26% of organisations are utilising biometrics, with another 16% of organisations set to deploy biometrics by 2021. Only 9% of organisations use blockchain/distributed ledger technology or robotics as part of their anti-fraud programs.

Amongst the findings concerns surrounding budget and finance was detected as the biggest obstacle for many organisations in adopting new anti-fraud technology, with 80% or organisations stating these concerns to be a major or moderate challenge. 

It was further identified that more than half of the respondents (55%) have plans to increase their budget for anti-fraud tech over the next two years. 

Laurent Colombant, continuous controls and fraud manager at SAS, said:

“The tools available for fraud prevention are now more intelligent than ever. 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.”

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