AI, advanced analytics and biometrics becoming central to anti-fraud efforts
The use of artificial intelligence for fraud detection will triple by 2021, and advanced analytics and biometrics are becoming central to anti-fraud programs.
That is the finding of a new survey by the Association of Certified Fraud Examiners (ACFE) in partnership with analytics software company SAS. The report examines data provided by more than 1,000 ACFE members about their employer organizations’ use of technology to fight fraud.
While only 13 percent of organizations use AI and machine learning to detect and deter fraud, another 25 percent plan to adopt such technologies in the next year or two.
About one quarter of the organizations (26 percent) use biometrics as part of their anti-fraud programs, and another 16 percent foresee deploying biometrics by 2021. More than half of the organizations (55 percent) plan to increase their anti-fraud technology budgets over the next two years.
By 2021, nearly three-quarters of organizations (72 percent) are projected to use automated monitoring, exception reporting, and anomaly detection. About half of the organizations examined anticipate using predictive analytics/modeling (52 percent) and data visualization (47 percent).
“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, president and CEO of 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.”