Generative AI set to reshape anti-fraud efforts by 2024

The latest 2024 Anti-Fraud Technology Benchmarking Report reveals that 83% of anti-fraud professionals expect to implement generative artificial intelligence (AI) in their efforts to combat fraud within the next two years. This report, conducted globally by the Association of Certified Fraud Examiners (ACFE) and SAS, outlines the trends and expectations in the developments of anti-fraud technology.

Currently, AI and machine learning (ML) form part of the fraud detection and prevention toolset for about 18% of anti-fraud professionals, and an additional 32% anticipate implementing these technologies in the upcoming two years. However, the practical application of AI and ML has lagged expectations. Despite a strong interest, the utilisation of these tools for fraud detection and prevention has only grown by 5% since 2019, falling short of the 25% and 26% anticipated growth rates projected in the 2019 and 2022 studies respectively.

While the utilisation of several data analysis methods seems to have reached a plateau, the application of biometrics and robotics in anti-fraud programmes has been on an upward trend. Physical biometrics utilisation has experienced a 14% increase since 2019 and is now used by 40% of the survey respondents. One out of every five respondents (20%) have reported using robotics, including robotic process automation, a significant surge from the 9% in 2019.

The President of ACFE, John Gill, expressed that: "The accessibility of generative AI-powered tools makes them incredibly dangerous in the wrong hands. Three in five organisations foresee increasing their anti-fraud technology budgets over the next two years. How they invest these funds will determine who will seize the upper hand in what's become a technology arms race with criminal enterprises."

A Senior Solutions Expert, Fraud & AML for SAS Northern Europe, Christen Kirchner, added: " A surge of interest in advanced analytics techniques alongside much more modest adoption rates proves the complexities of deploying and scaling the AI and analytics life cycle. It also highlights the importance of choosing the right technology partner as AI and machine learning aren't simple, plug-and-play applications."

Mason Wilder, ACFE Research Director, commented on the future prospects of generative AI in anti-fraud initiatives. He said: "Generative AI has made great strides these last few years, so it's no surprise that organisations are incorporating it into their anti-fraud initiatives, but more organisations are beginning to take that first step. It will be interesting to see how quickly adoption occurs, in and out of the workplace, in addition to the technology continuing to become more advanced with time."