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AI & ML for Fraud Detection to Triple by 2021: Survey

A new survey by Certified Fraud Examiners (ACFE) and analytics leader SAS, said that the use of Artificial Intelligence (AI) and Machine Learning (ML) for fraud detection globally would triple by 2021.

The survey says that since 13% of organizations use artificial intelligence (AI) and machine learning to detect and deter fraud, another 25% plan to adopt such technologies in the next year or two  a nearly 200% increase. Fraud examiners revealed this and other anti-fraud tech trends in a cross-industry that are widely spreading as per the survey.

“As criminals find new ways to exploit technology to commit schemes and target victims, anti-fraud professionals must likewise adopt more advanced technologies to stop them,” said Bruce Dorris, JD, CFE, CPA, President and CEO of the ACFE.

“But which technologies are most effective in helping organizations manage rising fraud risks? The answer to this question can be crucial in successfully implementing new anti-fraud technologies.”

The data was provided by more than 1,000 ACFE members about their employer organizations’ use of technology to fight fraud. Notable trends that were found in the research include the rise of biometrics by 26% of organisation as part of their anti-fraud programs; another 16% foresee deploying biometrics by 2021.

Anti-fraud tech budgets will increase over the next 2 years said 55% of organisations. Around 72% are projected to use automated monitoring, exception reporting and anomaly detection by the year 2021. 48% anticipate employing predictive analytics/modelling 52%; up from 30% and data visualization 47%; currently 35%.

The Survey respondents hailed from 24 industries  most prevalently banking/financial services (21%) and government/public administration (17%) and span the globe. The size of their employer organizations ranges from less than 100 employees to more than 10,000.

“Understanding peers’ technologies and strategies can help organizations determine where the industry is headed and guide their anti-fraud tech investments,” said James Ruotolo, Senior Director of Products and Marketing for Fraud and Security Intelligence at SAS.

“The dramatic rise of AI, machine learning and predictive modelling reveals that, beyond the hype, advanced analytics is helping investigators keep steps ahead of increasingly sophisticated fraudsters.”

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