Top Use of Artificial Intelligence and Machine Learning in Financial Scams

Machine learning refers to analytic techniques that "learn" patterns in datasets without being guided by a human analyst. Artificial intelligence refers to the broader application of specific kinds of analytics to accomplish tasks, from driving a car to, yes, identifying a fraudulent transaction. For our purposes, think of machine learning as a way to build analytic models and AI as the use of those models. Machine learning helps data scientists efficiently determine which transactions are most likely to be fraudulent, while significantly reducing false positives. The techniques are extremely effective in fraud prevention and detection, as they allow for the automated discovery of patterns across large volumes of streaming transactions.