Fraud


In praise of the autoencoder

#artificialintelligence

When you consider all the machine learning (ML) algorithms, you'll find there is a subset of very pragmatic ones: neural networks. They usually require no statistical hypothesis and no specific data preparation except for normalization. The power of each network lies in its architecture, its activation functions, its regularization terms, plus a few other features. When you consider architectures for neural networks, there is a very versatile one that can serve a variety of purposes -- two in particular: detection of unknown unexpected events and dimensionality reduction of the input space. This neural network is called autoencoder.


What's the new weapon against money laundering gangsters?

BBC News

Money laundering accounts for up to 5% of global GDP - or $2tn (£1.5tn) - every year, says the United Nations Office on Drugs and Crime. So banks and law enforcement agencies are turning to artificial intelligence (AI) to help combat the growing problem. Money laundering, so-called after gangster Al Capone's practice of hiding criminal proceeds in cash-only laundromats in the 1920s, is a huge and growing problem. "Dirty" money is "cleaned" by passing it through layers of seemingly legitimate banks and businesses and using it to buy properties, businesses, expensive cars, works of art - anything that can be sold on for new cash. And one of the ways criminals do this is called "smurfing".


Payments data, and AI, are creating a new cost center

#artificialintelligence

With new technologies like faster payments taking hold, the explosion of readily available data, and the ever-changing regulatory landscape, staying ahead of financial crime and compliance risk has become more complex and expensive than ever before. As these trends show no sign of abating, the compliance operations and monitoring staff of a financial institution often find themselves a major cost center. Financial institutions must manage compliance budgets without losing sight of primary functions and quality control. To answer this, many have made the move to automating time-intensive, rote tasks like data gathering and sorting through alerts by adopting innovative technologies like AI and machine learning to free up time-strapped analysts for more informed and precise decision-making processes. As financial institutions often benchmark themselves against their competitors, they are increasingly interested in seeing how these technologies are performing, and are asking themselves how to leverage artificial intelligence and machine learning to increase insight, reduce false positives and decrease compliance spend.


Comparing Different Classification Machine Learning Models for an imbalanced dataset

#artificialintelligence

A data set is called imbalanced if it contains many more samples from one class than from the rest of the classes. Data sets are unbalanced when at least one class is represented by only a small number of training examples (called the minority class) while other classes make up the majority. In this scenario, classifiers can have good accuracy on the majority class but very poor accuracy on the minority class(es) due to the influence that the larger majority class. The common example of such dataset is credit card fraud detection, where data points for fraud 1, are usually very less in comparison to fraud 0. There are many reasons why a dataset might be imbalanced: the category one is targeting might be very rare in the population, or the data might simply be difficult to collect. Let's solve the problem of an imbalanced dataset by working on one such dataset.


Why Machine Learning Is The Best Way To Reduce Fraud?

#artificialintelligence

Machine learning is a field of science that offers machines an ability to understand data and carry out processes just as a human would do. The ML technology uses complex algorithms to analyze large data sets and find data patterns that help in business decisions. This is why machine learning can detect fraud in the system easily. It is, in fact, used for various other purposes such as spam detection, product recommendation, image recognition, predictive analysis, etc. Gartner predicted that by the year 2022, the machines would be analyzing 50% of the data, which is only 10% more from the present scenario. Since machines are far better at detecting patterns, ML can analyze huge sets of data in one chance and find fraud-related behavior through cognitive technology.


Learn Python AI for Image Recognition & Fraud Detection

#artificialintelligence

Combine Python & TensorFlow powers to build projects. In this course, you will learn how to code in Python, calculate linear regression with TensorFlow, and use AI for automation. Together with a professional you will perform CIFAR 10 image data and recognition and analyze credit card fraud by building practical projects. We explain everything in a straightforward teaching style that is easy to understand. Join Mammoth Interactive in this course, where we blend theoretical knowledge with hands-on coding projects to teach you everything you need to know as a beginner to credit card fraud detection What you'll learn Learn how to code in Python, a popular coding language used for websites like YouTube and Instagram.


Estonia: a springboard for global startups and AI applications

#artificialintelligence

We know tech giants like Amazon, Baidu, Facebook and Google have AI advantages like collecting enormous amounts of data, access to top talent, huge investments in research and development, over smaller companies. However, the possibilities offered by AI are not reserved only for the largest companies and biggest economies. Estonia is looking for ways how to attract international talent and investments; and on the other hand, its small size with limited resources requires the public administration and government to work efficiently. No wonder that in Estonia, both the government and companies have noticed the potential of AI technologies to solve these current demographic and economic challenges, as the impact of AI on GDP in the Nordics alone is expected to be considerable: 9.9% of GDP (1.8 trillion). There is a large spread of AI readiness in Europe, but even the most advanced countries are lagging the US in AI frontier.


Why 'Explainable AI' Is the Next Frontier in Financial Crime Fighting

#artificialintelligence

With new technologies like faster payments taking hold, the explosion of readily-available data, and the ever-changing regulatory landscape, staying ahead of financial crime and compliance risk has become more complex and expensive than ever before. As these trends show no sign of abating, the compliance operations and monitoring staff of a financial institution often find themselves a major cost center. Financial institutions (FIs) must manage compliance budgets without losing sight of primary functions and quality control. To answer this, many have made the move to automating time-intensive, rote tasks like data gathering and sorting through alerts by adopting innovative technologies like AI and machine learning to free up time-strapped analysts for more informed and precise decision-making processes. As FIs often benchmark themselves against their competitors, they are increasingly interested in seeing how these technologies are performing, and are asking themselves how to leverage artificial intelligence and machine learning to increase insight, reduce false positives and decrease compliance spend.


When Global Banks Depend on Artificial Intelligence to Redefine Banking Analytics Insight

#artificialintelligence

Artificial Intelligence (AI) is evolving quickly as the go-getter technology for companies across the world to redefine their services and offerings. The technology itself is inching to become better and smarter day by day, giving high adoption goals to newer industries. There is huge interest garnered when one talks about AI in banking and other financial sectors, a domain which is showing very high adoption rates. The rudimentary applications into AI include introducing smarter chatbots for customer service, placing an AI robot for self-service at banks and personalising services for individuals. AI enables the Banks to bring in more efficiency to their back-office in a bid to reduce fraud and security risks.


Machine learning can help human rules combat fraud

#artificialintelligence

Machine learning technology will provide the best results in detection of fraud in the future. Indeed, many organizations are actively driving replacement of human-driven rules analysis with machine-driven solutions. However, I believe that a mix of machined-led and human-led activity is the best fit for many organizations to maximize performance. There are several perceptions that suggest fraud rules are no longer fit. Ultimately a data-driven approach, regardless of human or machine involvement, is a state that organizations need to move to in order to maximize detection in the present and to ease the transition to a more machine-driven future.