Open AI and its Impact on Fraud Detection in Financial Industry

Abstract

As per the Nilson report, fraudulent activities targeting cards amounted to a loss of $32.34 billion globally in 2021, a 14 % increase from the previous year. Such practices can be combated by harnessing OpenAI’s powerful machine learning and automation capabilities. Such advanced technologies help financial companies avoid any potential fraud and protect their esteemed clients' interests. Through the adoption and utilization of such innovative technologies., financial institutions will be better placed to protect their customers and entities from financial losses. Digital fraudsters are skilful in identifying loopholes and have developed cunning techniques like phishing for unsuspecting victims and wittingly swindling money off them. They are also updated in using OpenAI to develop deceitful information to scam people. This has seen the emergence of names like WormGPT and FraudGPT, reliant on generative AI models used by tech corporations with fraud intents. As a result, fraud detection techniques have to evolve with time as fraudsters progressively devise new techniques that bypass old and rigid banking security protocols and learn how to convince unsuspecting individuals to dispatch their money to them.