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Enhanced transaction monitoring is essential for reducing fraud losses, as AI becomes a powerful tool for both banks and fraudsters.
Nordic banks are increasingly focusing on transaction monitoring as a vital element of their fraud prevention strategies. This survey reveals a strong commitment among banks to invest in advanced monitoring systems to enhance customer protection and operational efficiency. Our conclusions indicate that transaction monitoring remains the key activity for significantly reducing fraud losses.
Banks are striving to replace traditional rule-based monitoring with more advanced models to improve detection rates while managing false positives effectively. Many of the banks express dissatisfaction with their current systems, and most cite limited customization options. The banks acknowledge the challenges posed by emerging fraud techniques, emphasizing the necessity for advanced technology.
AI plays a dual role in this landscape; while fraudsters are leveraging it to execute more sophisticated scams, banks are also adopting AI-driven solutions to enhance their capabilities in combating fraud. Currently, 40% of banks utilize AI in their monitoring efforts, primarily to reduce false positives and improve detection of complex fraud schemes.
Summary
The shift towards AI-driven systems is essential for banks to stay ahead of evolving threats and effectively reduce fraud losses whilst enabling a customer journey without too much friction.
For more details – please read more in our report and reach out to us.