Page 28 - GS240102

Education
ChapterTitle
StreetSmarts SM

How will AI influence the payments industry?

By Nick Cucci address fraud. In fact, AI can reduce fraud by as much
Fluid Pay LLC as 96 percent in some cases (see https://seon.io/resources/
fraud-detection-with-machine-learning/).
he payments industry is one of the best indus- Additional fraud risks
tries to pair with artificial intelligence (AI)
because it is highly based on logic and infor- Although AI can significantly reduce fraud, it also has
T mation. These are two areas where artificial the potential to be used to commit it. There are quite a
intelligence thrives, which could mean substantial gains few security risks coming to light with the introduction
for both companies and their customers. of artificial intelligence. Since AI can generate systems
with minimal input, fraudsters can benefit from better
This article sets forth some changes we can expect to see and more damaging technology.
in the payments industry in an AI-powered future.

Better solutions One of the biggest concerns regarding fraud and AI is
deepfakes. Using AI technology, criminals can mirror a
Artificial intelligence has already proven to be a driving person's voice and likeness, making it fairly easy to im-
force when it comes to innovation. The reality is that it personate them. With the right information, criminals
can do things that humans can't—and it can do them very can do significant damage and make it look like the per-
quickly. As AI enters the market, it is very likely we will son committed the actions themselves.
see better solutions begin to arrive. Sharper, smarter, fast- Stronger analytics
er and better business practices may be just around the
corner thanks to this exciting technology shift. Math is at the root of analytics, and when it comes down
Improved fraud protection to it, artificial intelligence is made of math. It should come
as no surprise that, for this reason, AI systems are incred-
Since artificial intelligence is able to review and evaluate
information very quickly, often in real-time, it is an abso-
lutely invaluable tool in fraud protection. These systems One of the biggest concerns
can spot red flags with a much higher success rate than regarding fraud and AI is
some of the systems in use today. In fact, some companies
are already using AI-powered systems to monitor for po- deepfakes. Using AI technology,
tential fraud.
criminals can mirror a person's
This change can surely benefit companies and customers voice and likeness, making it
alike. Everyone wins when criminals lose. Thanks to AI,
companies can reduce losses, and customers can enjoy fairly easy to impersonate them.
enhanced protections and fewer customer service calls to
28