Tino Herold’s Post

Giants of the financial industry are shaping the future of payments fraud detection by leveraging generative AI. This technology is revolutionizing payment security by pinpointing anomalies and mapping transaction networks. However, despite its potential, the adoption of generative AI for fraud detection faces a complex web of technical, ethical, and regulatory questions that need to be addressed. #Finance #AI #FraudDetection #PaymentSecurity #fraud #payment #payments #fintech #fintechs #processors #payfacs #banking

We’re enhancing our Payment Controls Service (PCS) using AI to help banks detect potential fraud in real-time with anomaly detection using pseudonymised data from billions of transactions across the Swift network. The enhanced service will detect and flag suspicious activity, enabling banks to respond more quickly than was possible before. Come January 2025, the service will give the financial community accurate insights into potentially fraudulent activity, a challenge that’s costing the industry billions each year. This innovation builds on our existing Payment Controls Service (PCS) following a successful pilot with financial institutions across Europe, North America, Asia and the Middle East. 👉 Find out more: https://okt.to/xkCAGF #financialcrime #fraud #innovation #interoperability #ai #anomalydetection

The RBI's new AI tool MuleHunter.ai feels like a much-needed wake-up call in the fight against digital frauds. Digital frauds are growing faster than we can react, and it’s impressive to see AI being used proactively to tackle this issue. MuleHunter.ai doesn’t just react to problems—it predicts and prevents them by analyzing patterns and catching risks in real-time. For me, this isn’t just about tech—it’s about trust. As we shift more towards digital transactions, tools like this can restore confidence and protect everyone in the system. 👏 #digitalfraud #aiinbanking #fintech #rbi

Thank you to FINTECH.TV for a great live session on AI's impact on fintech in 2024 with Stardog, CEO, Kendall Clark. From AML, KYC to product innovations, AI is disrupting the industry. Highly regulated industries like Financial Services need AI that is not only fast and efficient, but 100% accurate with traceability for compliance. No hallucinations are table stakes. Learn more about our no hallucinations solutions at www.stardog.com and check out the interview below! #data #ai #fintech #nohallucinations #voicebox

AI's Role in Combating Financial Crime Risks in BaaS   The situation surrounding the Synapse bankruptcy and its limited ripple effect on partner and sponsor banks put the entire BaaS business model under scrutiny. However, what could have been a major crisis has been largely contained. Now, the focus is back on Banking-as-a-Service (BaaS) as a key asset for banks and FinTechs, offering technological infrastructure that drives growth in an increasingly digital economy. Yet, as BaaS expands, so do the risks associated with financial crime, making AI a critical tool in combating these threats. AI is particularly effective in fighting financial crime by detecting anomalies and suspicious patterns that manual systems might overlook. By analyzing vast amounts of transactional data in real-time, AI can help financial institutions identify irregularities more quickly and accurately. This capability is crucial for combating fraud, money laundering, and other financial crimes, as AI continually evolves to address emerging risks and sophisticated tactics. AI further amplifies the ability to manage risks by automating processes that would otherwise require significant manual intervention. This automation not only enhances efficiency but also enables quicker responses to potential threats, allowing banks and FinTechs to stay ahead of financial crime while ensuring regulatory compliance in an ever-evolving digital landscape. #AI #BaaS #FinancialCrime #FraudPrevention #Fintech #RiskManagement #Compliance #DigitalEconomy

Nice article by Bankingdive, mentioning that financial firms monitor for fraud by looking for unusual activity, but an artificial intelligence model can be trained to transact like a real person. Artificial intelligence is now sophisticated enough that bad actors can use it, after taking over a consumer’s account, in ways that simulate that person’s behavior, creating another point of frustration for payments companies battling fraud, fintech professionals said. Advanced AI programs are now capable of mimicking the behavior of a real person, allowing the fraudsters to evade financial institutions monitoring for unusual activity, panelists said this week at the annual Money20/20 conference in Las Vegas. “The ability to just spin up a model and create 10,000 people that look real has gotten much higher,” said Brian Dammeir, head of payments for the fintech Plaid. read more here: https://lnkd.in/erBJ95bm #FintechNews #Finance #ai #DigitalBanking #payments #BankingTechnology #fintech #fusionalgo #banking #temenos #p2pfintech #thinkers360 #money2020

Want to learn more about the future of preventing fraud in payments? Join The Banker and Red Hat webinar on 16th July: "'Combatting payment fraud with AI". You can register using the link: https://shorturl.at/ln2H1. Chalapathy Neti, Head of the AI CoE at Swift, will be talking about how Swift is enabling industry wide collaboration to tackle economic crime collectively. "It takes a network, to fight a network". Swift, The Banker, Red Hat, #TBCombatFraud, Tom Zschach, Chalapathy Neti, Francisco Curbera, Nick Kerigan, Sajjad Khan, Amit Mahajan, Serge Ioanidis, Brigitte De Wilde, Mike Ninov

Transforming KYC in digital payments with AI! 🧠✨ Automated data extraction and real-time analysis streamline onboarding, enhance verification, and detect fraud with precision. This isn’t just efficiency—it’s trust and security at scale! #DigitalPayments #AIinFintech #KYC #Automation #DataScience #Fintech #CashlessSociety #FrictionlessPayments #LLMs #AI #MobileWallets

Fraudsters are getting smarter, but so is the fight against them 🛡️ This blog explores how AI can be a powerful tool for banks & fintechs to combat fraud, but also the importance of clean data to fuel its effectiveness. ➡️ Want to stay one step ahead of fraudsters? Discover how AI can revolutionise your fraud defence strategy: https://bit.ly/4bdnNFg #fraudprevention #payments #AI #fintech

In this recent article from FinTech Magazine, Kenneth Upchurch, Paysafe's Senior Director of Automation shares key insights for consideration when deploying AI in payments: 𝐕𝐚𝐥𝐮𝐞 𝐂𝐫𝐞𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐀𝐈: AI in payments should focus on delivering clear value aligned with business objectives. 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐓𝐫𝐮𝐬𝐭: With many consumers uneasy about AI in financial services, its critical to build trust through education, showcasing benefits like improved transaction speed and security. 𝐀𝐈 𝐟𝐨𝐫 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐚𝐧𝐝 𝐅𝐫𝐚𝐮𝐝 𝐏𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐨𝐧: AI technologies such as biometrics and behavioral analysis are crucial for enhancing security, fraud detection, and providing personalized financial services. Read more: https://brnw.ch/21wPiKc #itstartshere #fintech #ai #payments