Topic 3 Matters of Fraud: What is the role of AI?

AI algorithms can analyze large amounts of data in real-time and detect patterns of fraudulent behavior that may not be apparent to human analysts. This includes analyzing purchase history, transaction amounts, frequency, and location to identify transactions that are potentially fraudulent.

Decision trees is one type of machine learning algorithm that can be used to identify patterns in large datasets. These algorithms create a tree-like structure to help classify transactions as fraudulent or legitimate based on a set of criteria. Decision trees can quickly analyze large amounts of data in real-time and flag any transactions that meet the criteria for fraud.