Claude.AI’s New Analysis Tool a “Game-Changer” for Fraud Fighters?
- A new AI "superhero" has been introduced
- Claude.AI is a new analysis tool being called a "game changer"
- This innovation represents a new partner in effectively preventing fraud
For nearly a decade, we've heard about the potential of artificial intelligence for the bank industry and how it is a "game-changer." For checks processing and fraud detection, we've seen many major innovations -- from behavioral analytics to image forensic AI.
In the past few years, the potential for ChatGPT to be used in fraud detection has been discussed. As noted by Dataleon:
ChatGPT can effectively detect real-time fraud by analyzing text-based data, such as emails, chat messages, and social media posts. By analyzing the text in these communications, it can identify patterns and anomalies that may indicate fraudulent activity.
The article goes on to note a few examples that include analyzing test-based data, transaction data, and monitoring customer behavior.
Examining Claude.AI: A New Analysis Tool for Fraud Detection
However, there's a new tool available that is being praised by fraud fighter Frank McKenna. Frank on Fraud's latest post introduces Claude.AI, a powerful new analysis tool that is a "game-changer" for fraud analysts and investigators. The tool allows Claude to write and run JavaScript code, enabling it to process data, conduct analysis, and produce real-time insights that spot anomalies.
Frank McKenna didn't just take their word for Claude's effectiveness. He tested the new analysis tool by downloading years of raw FinCEN data and pasting it into Claude.AI.
I did not instruct it on what the data meant; I just told it to give me an analysis of growing fraud.
Seeing is believing! This is a game-changer. Absolutely incredible!
Can Claude.AI Improve Check Fraud Detection?
As noted enthusiastically by Mr. McKenna, Claude.AI's new analysis capability is a major breakthrough for fraud fighters. By augmenting and automating the analysis of large datasets, it can uncover fraud patterns and suspicious activity much faster than manual review.
When OrboGraph examines the possibilities of Claude.AI for check fraud detection, there are certainly areas in which Claude.AI can assist fraud fighters -- but for the most part, these functionalities already exist within established behavioral analysis systems from companies like our partner, Featurespace.
In Mr. McKenna's example, he uploads a large amount of data into Claude.AI for analysis. While it provides the ability to customize visualizations, most financial institutions who utilize an established vendor and their AI-powered behavioral analysis system have these capabilities. Most importantly, these systems are built to automatically ingest the data through direct integrations and APIs, analyzing the data and providing alerts.
As for its ability to detect counterfeits, alterations, and forgeries on the images of checks, the system itself would need significant training and resources that financial institutions would not be willing to expend when solutions like OrboGraph's Anywhere Fraud, powered by our OrbNet Forensic AI, already exist and achieve a 95% detection rate.
While we applaud Mr. McKenna for bringing light to new fraud-fighting tools, FIs already have these capabilities readily available to them -- it's up to the FI to engage and leverage the systems.