AI can assist with cybersecurity and aiding financial institutions in terms of fraud prevention. Complex algorithms allow computers to solve problems that were previously only solvable by humans, such as detecting unusual fraud patterns or strange spending fluctuations or with questionable invoices.
However, it remains that AI for cybersecurity companies need to be careful to not overly rely on it for their security, or they could be setting themselves up for problems. As an example, firms needs to pay attention to proper implementation of the cognitive capabilities of AI to ensure that it can really detect a threat.
However, artificial intelligence does not always work and there remains a learning curve, according to Mike Cutlip, who is the Chief Executive Officer at Authoriti.
According to Cutlip, there are advantages that AI can deliver, such as: “The ability to monitor multiple data points, detect an event, and formulate a response is where AI-based platforms are focused.” Using an example of reasons can be drawn from any number of data points such as user profiles of past behaviors, machine type, and geographies, as well as comparisons to other customer profiles.”
However, there are concerns as well with AI-based technologies, especially with the application towards financial transactions. Here it is “clear that fraud monitoring creates new forms of business risk and customer friction.”
It also stands, Cutlip explains, that AI can be turned against organizations: “As bad actors develop their own AI capabilities, the battle simply escalates. Also while the monitoring is performed with very sophisticated models, the investigation of alerts is often performed with legacy procedures prone to criminal activity themselves.”
