Toward an Intelligent Agent for Fraud Detection — The CFE Agent

One of the primary realms into which artificial intelligence research has ventured is that of psychometric tests. It has been debated since Alan Turing proposed the Turing Test whether performance on tests should serve as the metric by which we should determine whether a machine is intelligent. This is an idea that may either solidify or challenge, depending on the reader's predisposition, one's sense of what artificial intelligence really is. As will be discussed in this paper, there is a history of efforts to create agents that perform well on tests in the spirit of an interpretation of artificial intelligence called ``Psychometric AI''. However, the focus of this paper is to describe a machine agent, hereafter called the CFE Agent, developed in this tradition. The CFE Exam is a gateway to certification in the Association of Certified Fraud Examiners (ACFE), a widely recognized professional credential within the fraud examiner profession. The CFE Agent attempts to emulate the successful performance of a human test taker, using what would appear to be simplistic natural language processing approaches to answer test questions. But it is also hoped that the the reader will be convinced that the same core technologies can be successfully applied within the larger domain of fraud detection. Further work will also be briefly discussed, in which we attempt to take these techniques to the next level, a deeper level, by which we can get a better sense of the knowledge the agent is using, and how that knowledge is being applied to formulate answers.