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November 5, 2020 - Dimitri Trembois

Is Your Organization Ready for AI-Powered Fraud Detection?

AI-powered fraud detection is the present and future of minimizing fraud risks. So far, it’s the most powerful tool available to combat the ever-changing landscape of fraud, especially during times of uncertainty and volatility. 

Here’s a closer look at the benefits of AI-powered fraud prevention and how it’s changing accuracy, response, and ROI for the better.

AI Machine Learning Detects New and Evolving Threats

One of the foundational benefits of machine learning (especially unsupervised machine learning) is the ability to fine-tune itself when presented with new information. Because data does not have to be constantly retrained as new threats become known, an AI-powered platform can detect new and evolving threats as they occur instead of simply learning from them after the fact. 

This is especially critical right now with fraud running rampant during COVID-19. Research shows that transaction fraud had doubled and account fraud has climbed more than 40% since the beginning of the pandemic. 

These instances aren’t just individuals looking to improve their own gains, either. Massive organized crime rings are conducting global fraud on an alarming scale using many of the same tools and techniques companies use to stop fraud. Their patterns evolve faster than most tools can detect, which is why platforms that require extensive data training are no longer sufficient. 

Response Times Decrease Without Affecting Accuracy

When combating risks, fraud detection is only a part of the puzzle. Analysts must also have the right tools in place to stop fraud at the gates so that fraudulent transactions cannot be carried out. Studies show that the majority of businesses only recoup 25% or less of their revenue lost to fraud. What’s more, many businesses spend roughly $2.66 for every dollar lost to fraud. 

Logically, proactive fraud detection is best when it prevents fraud before it occurs. This enables a company to avoid incurring major losses and having to do damage control. 

AI-powered fraud detection supports this goal by looking at all data points simultaneously in real time to detect high-level patterns. A visual mapping tool allows users to see exactly why certain activities have been triggered and how they relate to other events. Analysts can take bulk action on these activities to improve their responsiveness and enjoy a greater level of accuracy with fewer false positives.

Less Overhead Improves ROI

Stopping fraud at the gate is a surefire way to reduce fraud-related costs. However, the cost of proactive fraud detection and prevention tools can offset these gains if it means incurring more overhead. 

DataVisor’s platform is designed to reduce overhead requirements on organizations and allow you to spend less time analyzing fraud cases. Even if it detects the same amount of fraud as your current tools, your ROI improves because you’re spending less on data training, man-hours, equipment, onboarding, and case review. However, the ROI will be even greater because DataVisor has a proven track record of detecting and preventing more fraud than reactive point solutions.

AI fraud detection isn’t just the future; it’s already changing the way organizations approach and mitigate fraud risk. Is your company· ready to do the same? Download the AI Fraud Detection Readiness Checklist to assess your organization’s current fraud prevention status and see if you are ready for the next level of fraud prevention.

Photo of Dimitri Trembois
about Dimitri Trembois
Dimitri has worked in sales organizations of all sizes in the SaaS space for 5+ years. His knowledge and experience in the financial services industry elevate strategic conversations around DataVisor’s fraud management & risk operations products. Consultation & partnership define Dimitri’s approach to identifying strategic alignment between his client’s problems & DataVisor’s solutions.
Photo of Dimitri Trembois
about Dimitri Trembois
Dimitri has worked in sales organizations of all sizes in the SaaS space for 5+ years. His knowledge and experience in the financial services industry elevate strategic conversations around DataVisor’s fraud management & risk operations products. Consultation & partnership define Dimitri’s approach to identifying strategic alignment between his client’s problems & DataVisor’s solutions.