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6 views2 pages

Assignmen 1

Uploaded by

abhishekkumartiwari6080
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Assignment

AI can be a powerful tool in preventing banking and cybersecurity fraud through real-time
analysis, anomaly detection, and predictive modeling. Here are several ways AI can be used,
with examples:

1. Fraud Detection and Prevention


Use: Real-time monitoring of transactions to detect suspicious activity.
Example:
 Machine Learning (ML) Models: Banks like JPMorgan Chase use ML algorithms to
flag unusual transactions, such as sudden large transfers or transactions from foreign
IP addresses not previously associated with the customer.
 Example in action: A customer typically makes small purchases in New York. If their
account suddenly attempts a $10,000 transfer to an account in Russia, the AI flags
and blocks the transaction instantly.

2. Biometric Authentication
Use: Enhancing security with AI-driven facial recognition or voice identification.
Example:
 HSBC uses AI-powered voice recognition for telephone banking, ensuring only the
account holder can access services even if account details are leaked.

3. Behavioral Analytics
Use: Tracking user behavior (typing speed, mouse movement, login times) to identify
account takeover attempts.
Example:
 Barclays Bank uses behavioral biometrics to detect when a user’s pattern deviates
from the norm, which could indicate an imposter or bot.

4. AI-Powered Chatbots with Fraud Awareness


Use: Educating and warning customers in real time.
Example:
 AI chatbots can alert users about phishing emails or suspicious login attempts, and
guide them on securing their accounts.

5. Deep Learning for Malware and Phishing Detection


Use: Identifying and blocking fraudulent websites, malware, and phishing links.
Example:
 Google’s Safe Browsing uses AI to continuously scan the web for phishing sites and
malware, warning users and preventing access through browsers.

6. Predictive Risk Scoring


Use: Assigning risk scores to transactions or accounts based on historical and real-time data.
Example:
 PayPal uses AI to assign dynamic risk scores to transactions, automatically holding or
rejecting those above a risk threshold.

7. Network Analysis for Money Laundering


Use: Detecting patterns in transaction networks indicative of laundering or fraud rings.
Example:
 AI tools map complex transaction chains to detect "smurfing" or layering in money
laundering operations.

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