Preventing Millions of Fraud with Anti-Money Laundering AI Solution

Summary:

By adopting a data-informed approach and leveraging AI fraud detection tools, the firm achieved an 85% fraud detection rate while maintaining a seamless customer experience. 

Client: 

A top five global financial institution (FI) offering a comprehensive suite of services: consumer banking and lending, commercial banking, corporate and investment banking, and wealth management. 

Problem Statement: 

The rise of instant payment channels brought significant opportunities but also exposed vulnerabilities to fraud. The FI needed to balance its fraud prevention measures with maintaining a seamless customer experience. The overarching goal was to create a data-driven fraud prevention strategy that minimized financial losses while preserving customer trust and satisfaction.

Results: 

• €1.7 million in attempted fraud prevented monthly.
• Achieved an 85% Value Detection Rate (VDR), significantly enhancing fraud detection capabilities.
• 50% faster alert resolution times.
• Enhanced customer experience by minimizing false positives and maintaining the seamlessness of instant payments.

AI Solution Overview:

NICE Actimize collaborated closely with the financial institution to enhance its fraud detection and prevention capabilities.

Advanced machine learning models were optimized to prevent performance degradation over time.

Fraud detection rates were preserved, ensuring high accuracy even as fraud tactics evolved.

References: 

1. Global FI prevents €1.7 million of attempted fraud monthly. https://www.niceactimize.com/Lists/CustomerSuccesses/Attachments/48/case_study_instant_payments.pdf

Industry: Banking and Financial Services

Vendor: NICE Actimize

Client: Global top five financial institution