• | 11:00 am

AI is crucial in credit card fraud detection, says Arab Monetary Fund report

The Arab Monetary Fund urges for more AI and machine learning adoption.

AI is crucial in credit card fraud detection, says  Arab Monetary Fund report
[Source photo: Anvita Gupta/Fast Company Middle East]

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.

Artificial Intelligence (AI) can be crucial in fraud management by detecting and preventing fraudulent activities. The Arab Monetary Fund (AMF) has revealed that global credit card fraud losses experienced by financial institutions and individuals recorded an estimated $32.3 billion in 2021, a significant increase of 13.8% compared to the previous year.

In its recent study, The Role of Artificial Intelligence and Machine Learning in Enhancing Credit Card Fraud Detection, the AMF has noted that as fraudsters increasingly exploit modern technologies, adopting AI and machine learning (ML) to detect credit card fraud operations in Arab countries is crucial in strengthening credit card fraud detection. 

It said machine learning algorithms can significantly contribute to achieving a predictive accuracy of over 94%. 

Moreover, the report notes that continuous development and updates to regulatory frameworks governing fraud detection systems should be encouraged. 

Key components of these frameworks should include ethical and responsible data usage, transparency, and accountability guidelines.

The report also urges cooperation between institutions. This involves sharing data and pooling resources to help one another identify fraud patterns and make it more impossible for fraudsters to jump between institutions. 

More Top Stories: