Digital Defenders: AI's Game-Changing Role in Payments Fraud Prevention

 

 

This session explored the dual role of emerging technologies like AI and blockchain in the fight against payment fraud. While these technologies offer powerful tools for detecting and preventing fraud, they also present new risks and challenges that need to be carefully managed. The discussion focused on how financial institutions, regulators, and technology providers can collaborate to harness these innovations responsibly, ensuring that they are used ethically to protect consumers and businesses from fraudulent activities while addressing emerging threats.

1. Fraud prevention with AI

  • AI and machine learning are key tools in detecting and preventing fraud in payment systems.
  • Ongoing monitoring and recalibration of AI models are necessary to ensure accuracy and prevent biases, especially racial profiling.

 

2. Data privacy and responsible sharing

  • NIBSS handles data sharing responsibly by encrypting sensitive data, ensuring it is shared on a need-to-know basis, and adhering to national data protection laws.
  • The use of a consent management platform ensures that personal data is only shared with proper consent, in line with regulatory requirements.

3. Ethical data use

  • Addressing data bias is critical, especially in AI fraud detection systems. Data diversity and continuous refinement are essential for fair and effective fraud prevention.
  • The ethical use of data must be supported by strong regulatory frameworks to ensure fairness and transparency.

4. Collaboration between regulators and industry

  • The role of regulators is vital in setting standards and ensuring compliance, while technology providers must prioritise secure data management and ethical AI practices.
  • Collaboration between the public and private sectors is key to developing a robust ecosystem that protects against fraud.

 

The session emphasised the importance of ethical AI and secure data sharing in preventing payment fraud. As AI and blockchain technologies become more integral to the payments ecosystem, ongoing refinement, regulatory alignment, and collaboration across sectors are essential to protect consumers and businesses.

 

Speakers:

  • Gurumurthy Palani, Head of Global Transaction Banking, Gulf International Bank B.S.C. (GIB)
  • Payal Patel, VP Risk & Compliance APAC, Circle
  • Premier Oiwoh, Managing Director & Chief Executive Officer, Nigeria Inter-Bank Settlement System Plc.

Moderator:

  • Nitin Mathur, Senior Account Director, Customer Success, Global Finance & Technology Network (GFTN)
 
 

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