AI-Powered Fraud Detection for Insurance Companies, Credit Card Providers, and Retail Banks

AI-Powered Fraud Detection for Insurance Companies, Credit Card Providers, and Retail Banks

Challenges:

Insurance providers, credit card and retail banks, formed consortium of financial institutions and were increasingly exposed to fraud risks with the likes of transaction fraud, identity fraud, and false insurance claims. Traditional fraud detection systems fail to adapt to the new and evolving fraud techniques leading to high rates of false positives, poor operational efficiency, and businesses overwhelmed by financial losses. The institutions required a scalable AI-powered, real-time solution that could tackle fraud while adhering to regulations such as AML and KYC. 

Solution: 

Solution:  
Implementing system of an AI based fraud detection in to their existing platforms. It became real-time fraud detection — using more advanced machine learning (XGBoost, LightGBM) and deep learning (Keras, PyTorch) models. The solution ingested data through Apache Kafka and AWS Lambda, applying behavioral analytics, device fingerprinting, and geographic analytics to detect fraud. It lowered the false positive rate by involving feature selection and increasing model performance. Comply with GDPR, PCI DSS, and AML through secure real-time monitoring and reporting. 

Business Impact:

• Fraud Detection Accuracy: Improved by 30%.  
• False Positives: Reduced by 20%.  
• Financial Losses: Cut by 15%.  

1. Operational Efficiency: Enhanced by automating processes, reducing manual efforts, and increasing team productivity.