AI for fraud detection to triple by 2021 - ACFE
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While only 13% of organisations use artificial intelligence (AI) and machine learning to detect and deter fraud, another 25% plan to adopt such technologies in the next year or two – a nearly 200% increase. Fraud examiners revealed this and other anti-fraud tech trends in a cross-industry, a global survey by the Association of Certified Fraud Examiners (ACFE), developed in collaboration with analytics leader SAS.
The inaugural Anti-Fraud Technology Benchmarking Report examines data provided by more than 1,000 ACFE members about their employer organisations’ use of technology to fight fraud. Other notable trends include:
The rise of biometrics.
About one in four organisations (26%) use biometrics as part of their anti-fraud programs; another 16% foresee deploying biometrics by 2021.
Increasing budgets. More than half of organisations (55%) plan to increase their anti-fraud tech budgets over the next two years.
Changing data analysis techniques. By 2021, nearly three-quarters of organisations (72%) are projected to use automated monitoring, exception reporting and anomaly detection. Similarly, about half of organisations anticipate employing predictive analytics/modeling (52%; up from 30%) and data visualisation (47%; currently 35%).
“As criminals find new ways to exploit technology to commit schemes and target victims, anti-fraud professionals must likewise adopt more advanced technologies to stop them,” said ACFE CEO Bruce Dorris. “But which technologies are most effective in helping organisations manage rising fraud risks? The answer to this question can be crucial in successfully implementing new anti-fraud technologies.”
Dive deeper online.
Complementing the benchmarking report, SAS’ online data visualisation tool allows users to analyse survey data by industry, geographic region and company size. Survey respondents hail from 24 industries – most prevalently banking/financial services (21%) and government/public administration (17%) – and span the globe. The size of their employer organisations ranges from less than 100 employees to more than 10,000.
“Understanding peers’ technologies and strategies can help organisations determine where the industry is headed and guide their anti-fraud tech investments,” said SAS senior director James Ruotolo. “The dramatic rise of AI, machine learning and predictive modelling reveal that, beyond the hype, advanced analytics is helping investigators keep steps ahead of increasingly sophisticated fraudsters.”
The Anti-Fraud Technology Benchmarking Report debuted at the sold-out 30th annual ACFE Global Conference, convening more than 3,000 fraud-fighting professionals on June 23-28 in Austin, TX. The report’s supporting sponsors include SAS alliance members Intel and Capgemini.