In this current era of technology, we witness cyber fraud frequently, which threatens our data security. Especially in the fintech industry, cybercriminals may use personal and confidential data for their financial objectives. However, new-gen technologies based on AI and ML are combating cyber threats to maintain data security. AI/ML-based fraud detection applications are giving an up pointer to data security.

In case of any breach, AI/ML system will provide a heads up to prevent the loss of sensitive data. From threat alerts to biometric verification, these techs are aiding the security of the fintech industry in many ways. Considering this, we have created a guide exploring how AI and ML can help your fintech business maintain cybersecurity. This guide will lead you to in-depth clarification of security features you can implement in the organization. So, sit back, relax, and start reading.

4 Ways in which AI and ML Combat Cybercrimes:

Identity Verification:

Due to the common issue of data breaches, companies create a firewall for safety between hackers and normal AI users. To reduce the risk, they are providing authentication methods that will make confidential information more secure than before.

Authentication methods may involve age verification, document authentication, or any other consent authentication that will help to maintain data security. During the last few years, many cases of breaches have happened in banks and other financial sectors. As a result, customer authentication has become a priority for these sectors to gain a competitive advantage.

Facial Recognition:

Nowadays, cyberattacks are much more common and happen very frequently, resulting in fraud and threats. Therefore, to fight against these threats, robust security actions are needed. Most of these attacks are caused by unchecked internet access. And for companies that work online, the only solution is registered entry.

Facial recognition or 3D animation is one of the leading solutions to cope with these threats. In case of any spoofing activity, the advanced biometric security system will get alerted and counteract the fraudster who wants to get into the system through unauthorized access.

Biometric Verification:

With time, cybercriminals are evolving their online account attacks to bot and spoofing attacks. However, businesses cannot defend online accounts from these attacks through their conventional authentication methods. Therefore, to prevent fraud and identity spoofing, many businesses are exploring the option of passwordless or biometric authentication.

For instance, scammers today use photographs or videos of people to substantiate the digital identity of a government-issued document such as a passport or driver’s license. To prevent these spoofing attacks, advanced biometric schemes like liveness detection are useful.

Fraud Prevention:

Technology, designed to provide comfort and speed, is now being used for fraud and theft. Moreover, it seems like there is no end to these frauds. Thus, financial organizations have decided to adopt Artificial intelligence and Machine Learning to fight against fraudulent transactions.

AI and ML are powerful enough to act as a defense against fraud. AI and ML programs can analyze large stacks of data in a few minutes and detect any suspicious transactions. AI solutions providers can create effective models to identify these threats, which will be helpful for many organizations. With fraud detection, an organization can prevent the loss of money and client satisfaction.

Conclusion:

Artificial Intelligence and Machine Learning are emerging technologies that can act as the Fintech industry’s defense against fraud and financial threats. The Fintech industry is growing rapidly. As a result, it has caught the eyes of many hackers.

Day by day, the attacks on the industry are increasing. However, AI and ML-based technologies have increased the security strength of the Fintech industry. Consequently, financial institutions can provide better and more secure banking services. Do AI and ML have only positive outcomes? At this moment, yes. However, the future is unpredictable, so we cannot say anything.