How Banks Are Using AI, ML To Fight Account Opening Fraud

The threat of a data breach is now an ever-present part of life for customers and the banks that serve them. A reported 3,813 data breaches across a number of industries -- collectively exposing 4.1 billion customer records -- occurred in the first six months of 2019, for example. This has become a larger problem for FIs as they must not only deal with protecting customers from fraud, but also guard against bad actors armed with 4.1 billion stolen credentials. Account opening fraud is a favorite tactic among such cybercriminals, many of whom rely on these credentials to pose as legitimate customers. Banks thus need to accurately determine potential customers' legitimacy as soon as they decide to sign up.