In today’s concluding part of our blog series on AI-enabled digital co-worker tools, we’re discussing the use of Agentic AI in financial fraud detection.
In the modern digital age, financial fraud is not simply about stolen credit cards. With its growing complexity, financial fraud has evolved into sophisticated attacks in the form of synthetic identities, advanced money laundering, and coordinated attacks. Human fraud analysts are racing against both time and knowledge. To detect any fraud, they need to mentally “connect dots” across transaction logs, social media platforms, and GPS data.
This manual process is often time-consuming, making it impossible for financial companies to detect and mitigate a fraudulent transaction on time, every time.
The challenge – Multimodal gap
The challenge for financial companies is that fraud no longer originates from a single place. While any transaction is in the database, the location is from a GPS log, and the fraudster’s alibi might exist on a social networking platform.
Traditional fraud detection systems too often miss the larger context. They may simply “flag” a transaction because of its high transactional value. For instance, they lack the reasoning required to report an incident where “a user posts a photo from a Bali beach, five minutes before filling up gas in Chicago.”
The solution – the Forensic AI investigator tool powered by Agentic AI. Let’s see how it works.
How it works – spatial logic and “impossible travel”
The Forensic AI investigator is designed to “think” like a forensic detective. It can guide financial analysts through a detailed forensic process to uncover the truth from the available data. Additionally, it features spatial logic to understand physics, not just data. For instance, it understands that humans cannot physically travel between London and New York in just 10 minutes.
Here’s how this AI-enabled fraud detection tool performs a forensic investigation in under 1 minute:
- Detects impossible travel.
This AI tool can instantly detect and flag physical impossibilities. For instance, it can flag a “high confidence” anomaly whenever a user logs into a financial app from one country, and then shortly swipes a credit card from another country. - Retrieves multimodal evidence.
Besides financial ledgers, this AI agent can cross-reference transactions (with timestamps) from external sources, such as visual evidence or social media tags. This enables it to build an accurate timeline. - Analyzes visual evidence.
Finally, it can corroborate the user’s identity by retrieving and analyzing visual data, such as document scans or CCTV footage.
The Forensic AI investigator can reduce an hour-long forensic investigation into a one-minute review with the following 3 key metrics:
- Investigation time
The forensic AI investigator agent can cross-reference any evidence in under 1 minute as compared to a few hours for a human investigator. - Parallel execution
This AI-enabled agent can automatically execute a 3-step forensic workflow – comprising flag, investigate, and verify – in parallel, thus saving valuable time. - Compliance
The forensic investigator tool maintains an auditable decision trail to maintain compliance. Every decision is documented along with the linked evidence and flags (if any). Similarly, every fraudulent transaction is provided with “why” it was flagged.
Conclusion – driving confident forensics
While fraud prevention is necessary, traditional fraud detection tools also report a high volume of expensive false positives. For instance, blocking a genuine customer’s credit card during travel can frustrate most customers – and lead to customer churn.
Designed as an AI fraud detection software tool, the Forensic AI investigator addresses the issue of false positives and provides forensic analysts the confidence to make the right decision. As outlined in this blog, it provides a complete cross-referenced “picture” of the transaction in a quicker time. This allows human investigators the confidence to block bad actors while allowing transactions made by legitimate customers.
In short, AI in financial fraud detection has replaced intelligent “guesswork” with precise science. If you want to know more about how this tool works, here’s a short demo.
As a recognized partner for Google Cloud, Onix has empowered the financial services industry with customized solutions to address a host of pain points. Get connected with our experts today.
