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Can AI spot scams banks miss?

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TLDR:

Last week, New York’s Attorney General sued Citigroup for allegedly failing to detect scams that bilked customers out of tens of thousands of dollars and for not reimbursing those customers. To combat fraud that is invisible to the bank, experts suggest that artificial intelligence (AI) and generative AI can play a role in detecting and preventing scams. Banks can use machine learning techniques to identify physical behaviors that deviate from the customer’s usual activity, as well as spot anomalous transactions. AI can help banks identify patterns, test patterns, and develop solutions to combat fraud. Generative AI is also being used by banks to create rules for machine learning models and evaluate the performance of fraud detection techniques.

Key points:

  • Artificial intelligence (AI) and generative AI can be useful in detecting and preventing scams that are invisible to the bank.
  • Banks can use machine learning techniques to identify physical behaviors that deviate from the customer’s usual activity.
  • AI can help banks identify patterns, test patterns, and develop solutions to combat fraud.
  • Generative AI is being used by banks to create rules for machine learning models and evaluate the performance of fraud detection techniques.
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