By using ML algorithms, processing billions of real-time data records per day to capture fraudulent patterns and outliers at Spicy AI. Fraud in financial services is estimated to cost $32 billion globally per year, making AI tools such as Spicy AI very valuable. Historical data, transaction patterns and user behavior are all used by Spicy AI to create risk profiles through which transactions can be red flagged if they do not adhere with pre-established norms. By retrieving data for transaction speed, location and spending amount Spicy AI can detect strange activities that are heavily related to fraudulent actions such as large or unlimited withdrawals taking place in the space of minutes / transacting from very distant locations.
Over time, Spicy AI algorithms continuously readapt and learn in order to always detect fraud scams. Adapting to meet this change is vital as fraudsters can be found constantly changing their strategy in order not to get detected by the traditional detection methods. One example is e-commerce, where general fraud attack rates are a debilitating 1.5% of revenue and Spicy AI can analyze any orderer data such as quaifiers for the purchase or login or payment method to detect high risk trans acting online in real time. Companies can act in seconds to prevent or mitigate likely damages due real-time analysis.
According to a recent Accenture report, companies applying AI-powered fraud detection see 30-40% lower false positive levels (i.e., real transactions erroneously identified as fraudulent). Reducing false positives not only protects real customer transactions but also enhances user experience with fewer blocked cases for legitimate customers. This increased accuracy prevents companies from losing revenue while simultaneously reducing customer friction — a necessity in order to maintain trust within fintech and e-commerce.
Spicy AI complements with NLP (Natural Language processing integration) to provide fraud protection in communication channels by watching out for phishing attempts and maliciously requests. For instance, in the field of insurance spicy ai is able to compare claim reports with established data and identify if the documents or information has been fabricated. This method saves insurance companies millions of dollar by decreasing False Positives off Fraud Claims up to 25%. Applying NLP and advanced analytics to reduce fraud across industries allows businesses to identify many types of fraudulent activities making security even better.
One of my favourite quotes — and an example from Warren Buffett, who said it takes 20 years to build a reputation & five minutes ruin one. To keep customers, trusty great systems and preventing credit card fraud in its place is absolutely critical. It enables companies to take care of fraud in a more proactive way by analyzing data, recognizing patterns and learning over time resulting in greater security and reliability for the welfare of its customers.