How AI spots fraud quicker than people - Raconteur

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Identity fraud, in which a slice of your identity ranging from new credit cards to entire bank accounts is taken over by criminals, rose by 49 per cent in 2015 on the previous year. That totalled almost 170,000 cases, according to data collected by Cifas, the financial industry's non-profit fraud advisory service. The reason for the rise is that more and more we use the internet for financial transactions, but have very few ways to verify our identity without cumbersome systems involving human interaction, which are also vulnerable to fraud. Cifas' 2015 Fraudscape report shows that 86 per cent of identity fraud happened online, with bank accounts and credit or debit cards most targeted, closely followed by loans and communications, typically mobile phone accounts. Businesses looking to tackle fraud are turning to artificial intelligence and deploying neural networks because the systems learn in a manner like the brain's own neurons to try to bust fraud Traditionally, companies dealing with such problems have acted after the fact, trying to unravel complex or opportunistic frauds by working back through audit trails.