Enterprises need assisted intelligence to guard themselves against financial frauds. When artificial intelligence (AI) is made a substitute to real intelligence, enterprises are at a greater risk of falling prey to fraudulent activities. In his presentation titled “Leveraging Next Gen Technology for Fraud Management”, Mrutyunjay Mahapatra, DMD & CIO, State Bank of India underlined this message.
Speaking at the ongoing ETCIO Annual Conclave 2018 (#ETCIO) in Hyderabad, Mahapatra asserted that next generation technologies alone cannot secure the information assets of an enterprise.
While leveraging new technologies to manage fraud in organization CIOs must ensure that these technologies are fit for the purpose. Adopting new technologies will not do the trick. CIOs should take their legacy tools and marry them to the new age tools .
Financial fraud that eat away into enterprise assets have moved out from the ambit of transactional events and stretches out to all channels of interactions across customer life cycle. Technology has changed the way frauds could happen. Dark net putting the identity of internal users at risk including personally identifiable information, data leak, SWIFT Hack, data exfiltration attempts, and ATM jackpotting are the wreaking a havoc on enterprises.
“Organizations have to balance CX, Compliance, Financial Losses, technology upgrades and operational resources. Behavioral analytics, end point profiling, user analysis will help organizations move from detection to response,” he said.
Supervised predictive models also cannot keep pace with the latest trends.Unsupervised learning models hold the key for advanced real-time fraud detection.Fraud detection and identification can be managed. However, fraud recovery and fraud governance are the areas where CIOs need to marry legacy with the new technologies.
“Integrating security at all levels of technology-development, testing, scaling and Ops to provide differentiated protection,” he stated.