Fighting fraud isn’t easy. It’s time-consuming, it’s challenging, and it’s expensive. Taking an artificial intelligence (AI) approach seems like a better strategy.
After all, AI can quickly analyze extensive amounts of customer data to identify emerging fraud patterns. By incorporating this insight into fraud risk scoring algorithms in near real-time, businesses can lower their risk of falling victim to fraud.
Where AI excels is its ability to quickly review incoming transactions. The algorithms can calculate fraud risk scores far faster than manual reviewers ever could, which means for businesses that must deal with a high volume of incoming orders, AI can be the difference between speedy approvals and disgruntled customers.
There’s a cost aspect to this as well. Because this initial review of incoming orders can be automated, businesses don’t need to spend valuable (read: expensive) man-hours reviewing each individual order. This can tremendously cut down operating costs, and it enables organizations to focus their analysts’ attention only on those specific orders that require further investigation.
And finally, AI can be very helpful at spotting obscure patterns in fraud that might not be readily apparent to the average reviewer. …read more