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How artificial intelligence is helping to slash fraud at UK banks - Information Age

How artificial intelligence is helping to slash fraud at UK banks - Information Age
Rob Woods, fraud expert, LexisNexis Risk Solutions, explains why behavioural data and AI are a powerful fraud-fighting combination

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Billions of data points from thousands of companies are being used to create a digital fingerprint of users and understand money flows to combat fraud. With fraudsters becoming more sophisticated, banks and PSPs are turning to shared data and machine learning to predict and prevent fraud. Behavioral analytics, tracking phone movement, touchscreen behavior, and keyboard behavior, are being used to detect deviations from normal user behavior. Banks are also monitoring device usage, time of day, and other interactions to build a digital fingerprint for each customer. This approach has led to a decrease in fraud in the UK, with LexisNexis Risk Solutions' ThreatMetrix being used by major banks and organizations worldwide. The system has proven to be effective in identifying fraudulent activities and mule accounts, reducing first-party fraud, and improving customer experience. The system is also adaptable and can be personalized for each organization's needs. Overall, behavioral analytics is seen as a customer-centric approach to combating fraud and has marked a turning point in the war against fraud.

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