As sure as nemesis follows hubris, the greater interconnectedness of the world created by
technology has left institutions vulnerable to fraud. But the good guys are using the same advances — algorithms, software, data — to combat fraud in innovative new ways.

The Computer Business Report identified five trends: Artificial Intelligence (AI), block chain technology, biometrics, predictive analytics, and Application Program Interfaces (API) as the trends most likely to feature in the detection of financial crime.

From CBR:

One aspect of machine learning involves identifying patterns of behaviour from large data sources. This is vital for the detection and prevention of financial crime. Through the continuous monitoring of comprehensive data, customer behaviour patterns can be identified to establish when a particular behaviour is out of the ordinary. Machine learning can take behavioural analysis to the individual consumer level, improving detection and reducing false-positive rates, while facilitating regulatory compliance.

Data analysis from machine learning can be used by financial institutions to detect potential fraud and money laundering in real time and more accurately. Real instances of financial crime can then be investigated immediately, while customers who are carrying out legitimate transactions can do so without disruption.

The World Economic Forum says:

Fraud analytics are now able to detect patterns of suspicious transactions in areas including taxation and healthcare and with real time detection, agencies have been able to detect, stop and remediate fraud resulting in billions of potential cost savings. Countries are also developing new methods for data development and sharing such as the ‘World Statistics Cloud’ that aims at improving the quality of information and reducing the costs of producing public data.


This proliferation of technology (big data for capturing, data mining for detecting, mobile applications for increasing accessibility and forensic tools for reducing opportunities for corruption) has the potential to create unparalleled opportunities for transparency and anti-corruption.