How Fraud Transactions can be avoided by AI in Banking Sector

Every time you receive a call from your bank after making a purchase using your credit card, it's generally AI- powered systems running in the background assisting your bank with fraud detection. These calls -- along with push ads or SMS verifications are a form of two- factor authentication initiated to validate the identity of the person who has made the transaction. AI also has the power to identify strange or out of the ordinary purchase patterns and behaviors, which can also be used to warn banks whenever any potentially suspicious transaction is conducted at the client's end. Not just that, AI can also prioritize suspected fraudulent activity so that investigations can be on the base of urgency or significance. ML strategies which are developed by using the true data of consumers -- can remember the usual spending patterns of the clients so that whenever it spots an anomaly, it can raises a flag, thereby making the AI system more equipped for identifying fraud.