As fraudsters get more sophisticated, credit bureaus are sharpening their tools to detect and curtail fraudulent transactions. It’s a concern that’s captured broad attention as popular peer-to-peer payments apps like Zelle and Venmo show security vulnerabilities. For many fraud victims, these transactions are irreversible, adding pressure on institutions to develop more robust solutions.
Credit bureaus, including FICO, are doubling down on machine learning and artificial intelligence to battle fraud. This week, FICO launched Falcon X, that will enable data scientists at financial institutions to combine open-source machine learning capabilities with FICO’s machine-learning techniques to detect criminal activity.