Scams and frauds in banking are undeniably not a new thing anymore as fraudsters have found more ways to do crimes, given that phones and the Internet have served as medium for the unwanted to happen.
With the rampant incidents of frauds and scams related to finance, machine learning can be leveraged to detect and prevent financial fraud, allowing a company or an organisation to respond in real-time. This minimises the losses and protect the company's customers.
The challenge is that the integration of digital platforms in the finance industry led to an increase in fraudulent activities, but with proper utilisation of machine learning, it can serve as an essential tool in combating the problems the finance industry continue to face.
Financial institutions are investing in building robust solutions that provide optimum security to their customers, and machine learning is a critical component of this process. Mobile app developers are also actively integrating various algorithms and explicit programming to create fraud-free apps for financial institutions. This proactive approach has helped to minimise fraudulent activities in the finance industry, safeguarding the financial interests of users.
Machine learning tools can help in identifying patterns in financial transactions that can lead to fraud. Algorithms can also be used to monitor how risky a particular transaction can be based on the transaction history. It can also assess what mode and how much amount the particular account can be allowed.
The advancement can also make use of tools that can monitor biometrics, typing patterns, typo errors which can lead to fraud alerts.
In addition, machine learning tools can audit large amounts of financial data and identify malicious activity that may be indicative of money laundering. This can help finance companies comply with regulatory requirements and prevent criminal activity.
Machine learning algorithms can also identify patterns in network traffic and detect anomalies that may be indicative of a cyber attack, preventing data breaches and protect customer information.