Credit card giants step up AI fraud detection

The system, however, is scalable, and is able to learn in more personalized ways, as well, Lahrech said. Recently, the company rolled out Eno, a chatbot-type of virtual assistant that can do things like break down a customer's charges or alert a customer to fraud through a conversational user interface. The AI fraud detection tool uses natural language processing (NLP) to accept a wide range of interactive responses from customers if it does report fraud, which Lahrech said can help Capital One build more of a context around the potential fraud case. An example is with cases of "friendly fraud," or when a consumer tried to defraud a credit card company, in which the issues can be complex. With ML technology, those answers from customers can be used to give more personalized responses, and also establish a profile based on pattern recognition.