Fraud Detection: Fighting Financial Crime with Machine Learning

Everyone is exposed to financial fraud. If you’re selling or buying something online, providing financial services, or simply processing tons of payments, you face fraud risks every day. For businesses, scams are especially scary, because you’re not only losing money but also customers who may no longer trust you.

There are two approaches to detecting fraud. And today we will talk about them, the most common one – using of rules and the more effective one – machine learning

0:00 Intro about travel reports in banks.
1:16 Two approaches to catching fraud
2:06 Rule-based fraud detection
4:17 How machine learning accelerates fraud detection
4:56 Step 1 – Understanding what is normal
7:00 Step 2 – Finding anomalies
8:40 Step 3 – Eliminating mistakes
9:25 Deep neural networks
10:00 Why does fraud still happen?

More about fraud detection in our articles:

1) https://www.altexsoft.com/whitepapers/fraud-detection-how-machine-learning-systems-help-reveal-scams-in-fintech-healthcare-and-ecommerce/
2) https://www.altexsoft.com/blog/business/how-to-choose-fraud-detection-software-features-characteristics-key-providers/
3) https://www.altexsoft.com/blog/credit-card-fraud-detection/

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Sources:

[ 1 ] https://www.chase.com/personal/credit-cards/travel-notification
https://www.capitalone.com/support-center/credit-cards/set-travel-notification
https://tdbank.intelliresponse.com/?requestType=NormalRequest&source=3&id=1870&sessionId=983addd7-dcdb-11e3-84ed-315ad579bb27&question=Why+and+how+should+I+inform+TD+Bank+that+I+am+traveling+overseas

[ 2 ] https://www.youtube.com/watch?v=AjYZhnNCNew

Music in video by EpidemicSound (www.epidemicsound.com)

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