Announcing Our New Funding Round & the Launch of Device Telemetrics & Intelligence Solution – DeviceIntel

The financial sector is witnessing an alarming surge in fraudulent incidents, creating a critical concern for the industry. In 2021 alone, fraud shot up by 70%, causing losses of over $5.8 billion. This troubling trend, paired with emerging threats like AI-based scams, makes it crucial to use the best tools available. In this post, we’ll take a closer look at how Seldon and Effectiv are teaming up to help financial institutions use artificial intelligence (AI) and machine learning (ML) to tackle fraud and risk.

Real-Time Payments & Fraud Prevention: Transaction Monitoring

Transaction monitoring is pivotal in helping financial institutions (FIs) mitigate financial crimes like fraud and money laundering. By identifying irregular patterns in real-time or near-real-time, transaction monitoring provides an essential line of defense. Automated systems flag suspicious activities, such as excessive transfers or unusual account activity, triggering further investigation or even blocking high-risk transactions.

Fraud Risk Should be Part of Your Risk-Based Pricing Strategy

Risk-based credit pricing can be a great way to expand community-based financial institutions’ loan portfolios while providing the communities they serve with a way to repair credit and obtain needed funding without having to engage with predatory lenders.