How is artificial intelligence used in fraud detection?

AI technologies have a vital role in fighting cybercrime by enhancing the most commonly used cybersecurity systems.

AI and ML have a crucial role in online fraud detection, where algorithms detect fraudulent activities in online transactions, such as credit cards, online banking or e-commerce transactions. These algorithms can be applied in real-time to identify and flag suspicious activities. 

A cybersecurity threat is any activity, event or situation that has the potential to cause harm to computer systems, networks or data. According to the Global Economic Crime and Fraud Survey 2022, after customer fraud, the second most common type of threat that financial services face is cybercrime.

Cybercrime refers to criminal activities involving technology, such as computers, networks or the internet. These activities can result in various harms, including financial loss, data theft or destruction and reputation damage. The most common cyber threats include hacking, phishing, identity theft and malware.

A Cyberattack is a specific type of cybercrime that involves an intentional attempt by a third party to disrupt or gain unauthorized access to a system or network.

Cybersecurity is defending different systems, networks and devices from malicious attacks. A crucial element of cybersecurity systems is the real-time monitoring of all electronic resources. The biggest software companies, like IBM, already use AI-powered technologies to enhance their cybersecurity solutions.