Transforming Trust: The Role of AI in Fraud Detection Across Industries
AI
04th Oct 2024
Invos Global
AI-Powered Fraud Detection
Fraud is no longer confined to traditional banking transactions. From e‑commerce chargebacks to deep‑fake identity theft, sophisticated schemes cost businesses billions each year. Artificial Intelligence (AI) has emerged as the most effective line of defence, thanks to its ability to analyse massive data sets in near real‑time, spot subtle anomalies, and continuously learn from evolving attack vectors.
The South‑Asian Banking Lens
Sri Lanka and its regional peers process an ever‑growing volume of real‑time payments (RTP). According to ACI Worldwide, India processed more than 118 billion RTP transactions in 2023, and similar growth curves are visible in Bangladesh and Sri Lanka. This velocity leaves little room for manual review.
AI models trained on historical transaction data, geolocation metadata, and behavioural biometrics now flag suspicious activity within milliseconds. Banks then route these alerts to human analysts—reducing false positives while maintaining compliance with central‑bank regulations on customer due diligence.
Expanding Beyond Finance
• Retail & E‑commerce – machine‑learning models monitor checkout patterns to prevent card‑testing attacks and promo‑code abuse.
• Telecommunications – telcos use anomaly detection to curb SIM‑swap fraud and account take‑overs.
• Insurance – computer‑vision algorithms verify accident‑scene photos against policy data, cutting fraudulent claims.
Best‑Practice Checklist
1. Layer Models – combine supervised models (trained on labelled fraud data) with unsupervised anomaly detectors for zero‑day threats.
2. Explainability – implement model‑explainability dashboards to satisfy auditors and regulators.
3. Continuous Learning – automate model re‑training on the latest labelled incidents.
4. Human‑in‑the‑Loop – keep fraud analysts in the loop to review edge cases and feed new labels back into the pipeline.
AI fraud‑detection platforms can cut manual review time by up to 70 % and reduce chargebacks across industries. For Sri Lankan and regional institutions ready to modernise, starting small—with a single high‑risk product line—often delivers rapid ROI and organisational buy‑in.
Related Blogs
