Need of New Age Technologies to Counter Payment Frauds

Banking CIO Outlook | Friday, December 21, 2018

Payment frauds are no new in the market. With the existence of currency frauds have also found existence in some or the other way, digital currencies are also not barred from payments fraud. Improvising banking security is an essential part of the overall banking process and banking organizations are highly concerned for the same. Concepts such as captcha, one-time password etc. are prevailing in the market to provide an extra layer of security but new methods are also being discovered from fraudsters to trick the consumers. Banking organizations have come up with technologies like biometric authentication taking the security a step forward and the other new age technology that holds the capability to build robust security against frauds is artificial intelligence.

Fraudsters collect data from different sources; at times they contact the consumers directly pretending to be authorized person and demand credentials to enhance security and similar kind of tricks. The modern-day criminals are educated technological experts enabling them to con people easily.  That does not mean that no hopes are left, educating banking customers both commercial and consumers will prevent from such frauds. Banking organizations are already working over this and have started to aware their customers regarding the same.

Coming back to artificial intelligence, this new age technology has the potential to analyze the patterns of fraudsters and predict the next move or the sector of payments that are targeted the most and patch up the security holes in real-time. All the activities of criminals can be monitored through AI and with data analytics security officials would be able to come with new security measures that are strong enough for fraud prevention. Also, machine learning technology can be brought into use and combining it with AI would allow the security defense mechanism to itself combat against frauds without human intervention.

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