Generative AI’s inventive potential has now come under scrutiny in the never-ending fight against fraud. The most recent joint research from SAS and the Association of Certified Fraud Examiners (ACFE) has shown that anti-fraud experts are increasingly considering using generative AI as part of their defensive measures. There has been a sea change in the strategy for preventing fraud, as 83% of these specialists are getting ready to include this technology into their toolbox within the next two years.
Navigating Through the Evolution of Anti-Fraud Technologies
The journey through the advancements in anti-fraud technologies has been meticulously documented in the 2024 Anti-Fraud Technology Benchmarking Report. This report, the third of its kind since its inception in 2019, draws from the insights of nearly 1,200 ACFE members who participated in a survey conducted in late 2023. It highlights the shifting sands of fraud fighting technologies over the years.
One of the standout findings of the report is the heightened interest in AI and machine learning (ML) within the anti-fraud community. At present, 18% of professionals in this field are leveraging AI/ML tools, with an additional 32% planning to adopt these technologies in the near future. This anticipated surge suggests a near tripling in the application of AI/ML in fraud prevention efforts by the end of the next year.
Despite this enthusiasm, the path to AI and ML adoption has been marked by challenges. The growth in adoption has been modest, increasing by only 5% since 2019, which is a stark contrast to the high expectations set in previous years.
Advancements and Ethical Dilemmas
The report also sheds light on the increasing use of biometrics and robotics in fraud prevention, especially within the banking and financial services sector. The adoption of physical biometrics has seen a 14% increase since 2019, while the use of robotics, including robotic process automation, has more than doubled in the same timeframe.
John Gill, President of ACFE, cautions against the potential misuse of generative AI, underscoring the importance of ethical considerations in its deployment. He states, “The accessibility of generative AI-powered tools makes them incredibly dangerous in the wrong hands. Three in five organizations foresee increasing their anti-fraud technology budgets over the next two years. How they invest these funds will determine who will seize the upper hand in what’s become a technology arms race with criminal enterprises. It’s an uphill battle when you consider that, unlike the fraudsters, organizations face the added challenge of having to use these technologies ethically.”
Stu Bradley, Senior Vice President of Risk, Fraud, and Compliance Solutions at SAS, highlights the complexities involved in integrating AI and analytics into fraud prevention measures. He advocates for a strategic approach, utilizing SAS’ cloud-native, language-agnostic platform, SAS Viya, to facilitate the adoption process.
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The Future Landscape of Generative AI in Fraud Prevention
The report and accompanying online data dashboard by SAS offer a deep dive into the current and future state of anti-fraud technologies across various industries and regions. The question of whether the fervor for generative AI will translate into widespread adoption remains, with challenges such as budget constraints, data quality, and skill gaps posing significant hurdles.
The insights from the 2024 Anti-Fraud Technology Benchmarking Report paint a picture of cautious optimism, emphasizing the need for responsible innovation and the establishment of ethical guidelines.
As the narrative around generative AI continues to unfold, the words of ACFE Research Director Mason Wilder resonate with the promise and challenges that lie ahead: “Generative AI has made great strides these last few years, so it’s no surprise that organizations are incorporating it into their anti-fraud initiatives. As a society, we are still learning all the advantages and disadvantages to using the technology, but more organizations are beginning to take that first step. It will be interesting to see how quickly adoption occurs, in and out of the workplace, in addition to the technology continuing to become more advanced with time.”
In this dynamic landscape, the strategic embrace of generative AI heralds a new era in the fight against fraud, marking a pivotal moment in the pursuit of security and integrity in the digital world.
