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Banks in Kazakhstan to introduce artificial intelligence to combat financial scams

Artificial intelligence will help protect residents of Kazakhstan from financial fraudsters. Self-learning algorithms will instantly stop the transaction and inform the specialists before the scammers gain access to other people's money. Such technologies may appear in almost all banks in the country, the IBA Group, an international IT company, said.

Financial fraud has become a major danger for anyone with open bank accounts or cryptocurrency wallets. In two years, the number of successful attacks has increased by 20%. Scammers are constantly coming up with different stories and schemes. Their tricks lead to serious losses. According to statistics, only every tenth victim of a scam in the world returns funds. To cope with the growing threat, banks are actively implementing artificial intelligence.

Experts have identified the most common schemes in Kazakhstan. Among them is cryptocurrency scams, when people transfer money to fraudsters' accounts. Another common pattern is "a relative in trouble." The attackers call the victim and report an alleged accident with his relative. The three tricks of scammers also include "law enforcement assistance." Scammers ask the victim to help expose the criminals and participate in investigative actions.

At the same time, banks are required to comply with anti-fraud regulatory requirements. Government agencies prescribe the use of software with certain functionality. Transactional anti-fraud monitors transactions with payment cards and identifies suspicious transactions, while session anti-fraud analyzes customer actions in mobile applications and online banking.

However, these security systems face serious limitations in accessing data. Card fraud does not see the full profile of the client, his transaction history and behavioral patterns. In turn, the session anti-fraud does not receive all the data about transactions and the history of the customer's interaction with the bank. Some information is intentionally blocked for security reasons and compliance with personal data protection requirements.

Artificial intelligence can change the situation. Machine learning algorithms analyze historical data on transactions and customer behavior to identify suspicious transactions on time. Unlike traditional systems, they are capable of processing huge amounts of data and finding non-obvious patterns.

Therefore, banks in Kazakhstan are on the verge of a massive transition to artificial intelligence systems. Implementation takes from 6 to 12 months, depending on the complexity of the banking infrastructure. AI solutions will complement existing tools and integrate into existing processes, which will not require drastic restructuring of business processes or large-scale retraining of personnel.

"The most effective are combined AI solutions that work on two levels simultaneously. They analyze personal patterns of customer behavior and common signs of fraudulent schemes. When an operation raises suspicions about both parameters, the system automatically assigns it a high risk level. This significantly increases the accuracy of fraud detection and reduces the number of false locks," the IBA Group top manager shares the details.

Artificial intelligence will allow banks to identify atypical customer behavior and respond to it in time. Unlike traditional systems that work with a limited set of data, AI solutions can integrate information from various sources and adapt to new fraud patterns through continuous training.

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