Catching fraud has always been an ever-evolving effort, just like a game of cat and mouse. As more and more technical advancement takes place, more and more schemes are needed to break it.
Catching fraud was never a new thing, but what is new is catching fraud using Artificial Intelligence. It is ironic that with this pandemic, spending is going down yet violations are rising. One possible reason for this irony is the unusual nature of spending patterns and changes in the policies. With this pandemic, we witnessed several expenses using a smart way such as personal card, pay-pal, etc. In a business like a consumer, sector fraud is happening even if the expenses like travel dropped significantly. As the whole world rushed towards the remote workforce, oversight data says that the halt in the travel resulted in a drop of 63.5%, and the same oversight data says an increase of violation up to 206.7%.
Across the world today the new way of spending has created a new source of risk. Usually, when fraud happens, the traditional way to deal with it is to go through all the various types of transactions to search the potential fraud, waste, or misuse. But in today’s world it nearly impossible to find fraud with the use of a traditional approach. It can only give us a snapshot of the activities happening in an organization such as purchase and spending. Artificial Intelligence is showing its power in almost all business in today’s world. With the presence of AI in every transaction made, it enables to systematically identify the irregularities, such as unusual vendor payment or unusual transaction.
Recruiting a bunch of people for the sole purpose of auditing and training them accordingly is always less comprehensive and time-consuming. The AI-based review in every transaction made will provide us with the best chance to attenuate the risk of fraud in any organization. The AI-driven risk identification system will help the organization from fraudulence to happen in the future as AI-based tools are a continuous learning tool that keeps on evolving as it experiences new events.
(This article was originally published in Passionate in Analytics.)