Fraudulent activities can take many forms, from identity theft and credit card fraud to false advertising and tax evasion. AI systems can be used to detect and prevent these activities in a number of ways.
By analyzing past patterns of fraudulent behavior, AI systems can learn to recognize the telltale signs of fraud. For example, a system might flag a credit card transaction as suspicious if it is for an unusually large amount, is being made by someone who normally spends very little, or is being made from an unfamiliar location.
AI systems can also be used to monitor current activities for signs of fraud. For example, a system might track the number of times a person tries to log into a financial account from different locations or devices, or the amount of time they spend filling out forms on a website. If the system detects anything out of the ordinary, it can raise a red flag and allow human investigators to take a closer look.
In addition to detecting fraud, AI systems can also be used to help prevent it from happening in the first place. For example, AI-powered anti-fraud systems can automatically identify and block suspected scams and phishing attempts. They can also be used to monitor employee activity and flag anything that looks suspicious.
AI systems are constantly evolving and becoming more sophisticated. As they become more widely used, they will no doubt become more effective at detecting and preventing fraud.
References:
https://www.investopedia.com/terms/f/fraud.asp,
https://www.businesswire.com/news/home/20190912005084/en/Global-Fraud-Management-Market-Reach-US47.8,
https://detection.ai/fraud-detection-with-artificial-intelligence/,
https://www.nasdaq.com/articles/phishing-scams-what-they-are-how-to-avoid-them-2019-11-22