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AI for Fraud Detection to Triple By 2021 – Study

Only 13% of organizations 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 – a nearly 200% increase. This was revealed by fraud examiners and other anti-fraud tech trends in a cross-industry, in a survey by the Association of Certified Fraud Examiners (ACFE) in collaboration with SAS.

Anti-Fraud Technology

The report titled, Anti-Fraud Technology Benchmarking Report examines data provided by more than 1,000 ACFE members about their employer organizations’ use of technology to fight fraud.

The other notable trends predicted in the report include:

  • The rise of biometrics. About one in four organizations (26%) use biometrics as part of their anti-fraud programs; another 16% foresee deploying biometrics by 2021.
  • Increasing budgets. More than half of organizations (55%) plan to increase their anti-fraud tech budgets over the next two years.
  • Changing data analysis techniques. By 2021, nearly three-quarters of organizations (72%) are projected to use automated monitoring, exception reporting, and anomaly detection. Similarly, about half of organizations anticipate employing predictive analytics/modeling (52%; up from 30%) and data visualization (47%; currently 35%).

“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,” said Bruce Dorris, JD, CFE, CPA, President and CEO of the ACFE. “But which technologies are most effective in helping organizations manage rising fraud risks? The answer to this question can be crucial in successfully implementing new anti-fraud technologies.”

“With the spike in occurrences of fraud in the Financial & Public sectors, it has become increasingly important to combat the menace with a combination of domain expertise and improved technology that can analyze volumes of data, detect anomalies or even trigger alerts on behavioral misconducts. Criminals find new ways to exploit systems each day, but advanced analytics, AI and Machine Learning will clearly be among the most-used technologies to combat fraud risk going forward,” said Noshin Kagalwalla, VP & Managing Director, SAS India.

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

Further, the report’s supporting sponsors include Intel and Capgemini. The Anti-Fraud Technology Benchmarking Report debuted at the sold-out 30th annual ACFE Global Conference, convening more than 3,000 fraud-fighting professionals on June 23-28 in Austin, TX.

For the full report: Click Here.

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Jyoti Gazmer

A Mass Comm. graduate believes strongly in the power of words. A book lover who dreams to own a library some day. An introvert but will become your closest friend if you share mutual feelings about COFFEE. I prefer having more puppies over humans.

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