DataVisor launches gen-AI facilitated fraud solution

The transformative technology looks to enable financial institutions to respond to real-time fraud 20 times faster and be increasingly accurate in catching fraud than when compared to traditional solutions.

Fraud prevention and DataVisor’s AI Co-Pilot capabilities

Per the announcement information, DataVisor’s AI Co-Pilot helps significantly enhance a financial institution’s (FI) ability to detect fraud, while concomitantly reducing false positives and minimising user friction, all in real-time. Following the recent launch of the FedNow service and the ongoing expansion of other instant payment methods, the innovation is believed to be crucial, as it empowers FIs to capitalise on real-time payment opportunities while adeptly managing the unique challenges brought forth by transactions that are both instantaneous and irreversible.

DataVisor’s AI Co-Pilot includes the following new capabilities:

• AI-automated rule tuning to react to fraud in a more fast and accurate manner. AI Co-Pilot leverages advanced AI to automate rule creation and tuning, offering improved detection and saving fraud teams 50% of their time by eliminating time-consuming and costly trial-and-error methods. It keeps FIs 100% in control of their fraud strategy by retaining the use of traditional rules, and the dual focus on fraud reduction and automation is believed to help translate to millions of dollars in savings for FIs.

• Feature generation and debugging automation. AI Co-Pilot provides automated feature-script generation from natural language input, enabling fraud strategies to translate their insights into actions easily. Furthermore, it delivers coding and debugging recommendations to simplify the feature engineering process, expediting the development of both rules and models. This enables businesses to create and implement extensive fraud strategies free of the need for additional programming support, granting FIs the ability to respond to emerging fraud trends in a rapid manner.

• Improved explainability for enhanced customer experience. Offering human-readable explanations for fraud detection has been a hurdle to ensuring a transparent and simplified customer experience, and AI Co-Pilot looks to address this challenge by automating the generation of natural language-based rule descriptions, enabling customer support to explain the rationale behind alerts effortlessly. Additionally, the solution helps simplify the monitoring and documenting fraud strategies process for FIs, thereby reducing maintenance and fraud management overhead.

In 2022, bank transfer and payment fraud loss in the US totalled over USD 1.58 billion. The cost to smaller FIs and credit unions can be even more detrimental, keeping them from adopting instant payments and other innovations that could help grow their businesses. 

Within this context, innovation in payments and banking requires ongoing innovation in fraud prevention. When commenting on the launch, DataVisor officials said that as it is built on advanced gen-AI technology, AI Co-Pilot provides FIs with better intelligence and automation for increasingly effective fraud detection and prevention. The solution is more accurate, reacts to fraud trends faster, and betters the user experience and customer support while reducing the need for analyst resources. Per their statement, the advancement is believed to mark a pivotal step towards increased security and efficiency across the industry.