AI: The Future of Financial Crime Investigation
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AI: The Future of Financial Crime Investigation

AI The Future of Financial Crime Investigation

Financial crime is about to become much harder for criminals to achieve.

AI is helping society advance in many ways like detecting and preventing financial crime.

AI is helping to improve our society in many ways. From being able to market more precisely to even being able to catch criminals at a concert full of over 60,000 people, AI is improving all aspects of our society. Many believe that the next step for AI is to protect the future of our finances by stopping financial crimes with investigation.

Why AI is the Future of Financial Crime Investigation

Thanks to AI, banks are now able to analyze a massive amount of transactional and client information from multiple sources. These sources include many databases, Lines of Business or LOB, public internet sources and even the deep web.
Artificial intelligence in financial services can analyze this massive amount of data because of highly advanced algorithms that collect and interpret data, model behaviors, detect anomalies, infer relationships and identify issues. Once these highly sophisticated algorithms complete this, they report any irregularities to a machine learning engine. Machine learning in finance can then fix any issues based on the alert and supporting evidence given by the algorithms.

Many financial institutions use transaction monitoring systems to verify transactions. These TMS have limitations, though, but with the help of AI, they can be improved in many ways. With the application of artificial intelligence in financial services such as TMS, AI can identify anomalous transactions that aren’t flagged by the system, it can identify below the line activity and other unmonitored activity, and it can identify innovative and new techniques to improve AML processes. AI in financial services can also update rules-based TMS, enhance the ability to access transactions with limited data, review flags created by TMS and provide scoring for each case, and it can also improve the research process by serving up the most relevant data points.

With artificial intelligence in financial markets, false negatives can be drastically lowered. False negatives are illicit transactions that go unflagged by TMS. These pose serious risks for financial institutions. Banks are responsible for detecting potentially illicit activity and reporting that activity to law enforcement.

With the false negatives banks possibly face, TMS is not enough to prevent all financial crimes from happening. AI can change this though. AI can streamline and improve financial crime investigations, address regulations and compliance, and effectively stop criminals from using legitimate businesses and industries to complete their criminal agendas.

TMS is essential for the maintenance of effective AML programs. These systems, though, are failing in a major way. These systems are failing to flag over half of the potentially risky transactions, putting banks and customers at risk. AI will help combat this by outperforming these outdated systems. AI is enhancing our daily lives through marketing, HR, information technology and especially finance. The finance industry is using AI in a big way to stop criminals from using their institutions to achieve their evil activities. As AI advances, more and more in the coming years, financial criminals will find it much more difficult to complete their criminal tasks.

Emily Pribanic
Emily Pribanic
Emily is a graduate of the University of North Texas. She has her B.A. in Advertising with a concentration in Copywriting. Emily has been writing since she was young and has a creative imagination. She lives in Dallas, Texas with her family and two cats.

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