How Can AI Help in Banking Fraud Analytics?

An overwhelming number of people in the United States of America use online banking. They can purchase goods and services online and make payments within a few seconds. However, the number of banking frauds continues to increase rapidly. Modern swindlers use different manipulative techniques to cheat people financially and take their money away. Banks and financial organizations have started using AI in fraud detection. Is it possible to do so? Let’s talk about it in detail.

These days, different banking frauds are quite common, such as account takeover, mobile SIM swap, technical support fraud, investment scams, invoice fraud, opening of fake bank accounts, etc. The careful use of artificial intelligence can help tackle all these banking frauds conveniently. Regularly reading financial news websites and blogs will help increase your knowledge about different types of digital banking fraud and preventative steps.

The opening of fake bank accounts is a very rampant occurrence in the United States of America. Both individuals and companies use fake documents to open bank accounts in large numbers, make black money white, or commit financial crimes.

• In September 2016, Wells Fargo Bank was fined $185 million for opening 1,534,280 unauthorized deposit accounts & 565,433 credit card accounts. 
• In 2022, the Consumer Financial Protection Bureau (CFPB) imposed a heavy penalty of $37.5 million on U.S. Bank for opening sham bank account accounts and credit lines.

In 2023, Bank of America was fined over $250 million for opening fake bank accounts, withholding promised credit card rewards, and charging illegal fees.

AI-powered Solutions
Banks and financial organizations can use artificial intelligence to analyze massive amounts of customer data in a few seconds and quickly identify criminals trying to open fake bank accounts using forged documents. AI enables them to verify documents and suspicious patterns in the account opening applications and prevent the opening of bogus bank accounts.

A large number of individuals make online transactions every day. However, not all transactions are done by real bank account holders. Due to the growing cases of online scams, unauthorized transactions also happen. As a result, both business organizations and individuals lose their wealth.

AI-powered Solutions
Banks use machine learning algorithms to analyze the large volume of transaction data in real-time and identify patterns and suspicious behaviors. If someone breaks into your bank account and tries to make many transactions quickly, the bank will immediately alert you with email and SMS notifications. You can take the necessary steps to prevent transactions on a compromised bank account and stop your money from being stolen. The use of artificial intelligence makes behavioral analytics, anomaly detection, and geolocation tracking easy tasks for banks.

Individuals often have technical issues with their bank accounts, so they look for help from relevant bank officers to eliminate the issue as soon as possible. This is where technical support fraud can take place. Cybercriminals often pose as the bank’s representatives and contact customers through phone calls, emails, etc. They try to manipulate their minds, remotely access their computers, laptops, or mobile devices, and steal money in the name of fixing supposed technical issues with bank accounts.

AI-powered Solutions
Banks often use AI-powered chatbots to automatically detect suspicious interactions and alert humans instantly. They instantly alert both customers and bank security teams when fraudulent technical support is requested. Moreover, they might use AI-powered biometric authentication (such as facial recognition, voice recognition, or fingerprint scanning) during technical support interactions to verify the identity of the bank account holders and help them accordingly.

Investment scams are increasing faster than you can imagine. Just one mistake is sufficient to destroy your digital identity and lose the entire digital assets. You need to gain detailed knowledge about different investment schemes and decide accordingly. However, usually, people are driven by profits, don’t cross-check investment proposals, and lose money due to a scam.

AI-powered Solutions
Both banks and individuals can use AI to identify suspicious investment proposals, extract the previous records of investment platforms, and improve their ability to detect and prevent scams before scammers can take the money away.

Despite vigilance and practicing all security measures, banking fraud often takes place. What should you do if you lose all your money after an investment scam? Should you try to retrieve your money yourself or get professional help without having any doubt in mind?

In today’s ultra-modern world, cybercriminals use technologically advanced means to steal digital assets. This makes it almost impossible for ordinary individuals and even business organizations to track money trails and recover them. In such a situation, Sky Recoup is always happy to help you with its scam recovery services. Contact us immediately in case of financial fraud and share some pieces of evidence. We will act immediately, investigate financial crime, take the help of law enforcement agencies to chase cybercriminals, and take all possible steps to recover the stolen money.

With a sharp increase in banking scams, AI fraud detection has emerged as a viable solution. Thanks to the easy availability of free and premium AI solutions, banks and even individuals can use AI to detect financial fraud conveniently in the early stages and avoid monetary losses. Sky Recoup offers online scam recovery services to all. Contact us immediately to recover your lost digital assets faster. We have several years of experience in offering scam recovery services to all.