The Future Is Now: How Machine Learning is Combating Bank Fraud

Picture this: one morning, when you stop to fill up your car on the way to work, your card sticks a little as you slide it into the slot on the gas pump. You push it in, and everything works. You fill up your tank, and pretty soon your mind is on a day full of meetings.

What you don't know is that someone put a skimmer on the card reader — that little stick when you first put in the card is a telltale sign.

As you go through your day, a scammer takes your credit card information and uses it to make a series of purchases. A purchase from an online retailer, another from a wireless store. Nothing that seems initially outlandish, but over the course of a day, a few hundred dollars in charges pile up.

Do you notice? Does anyone?

The good news is that with emerging technology like artificial intelligence (AI) and machine learning—computer algorithms relying on pre-trained data to autonomously perform and improve upon designated tasks—Capital One is taking a forward-leaning approach to combat the industry-plaguing problem of fraud.

Fraud is a complicated and fast-moving threat, and fraudsters are constantly keeping pace with the latest technologies to make their schemes more sophisticated. This means the technology at Capital One must constantly evolve to combat these threats and make real-time decisions about what may and may not be a fraud incident.

Several factors come together to make machine learning an approach that is well-suited to tackle the dilemma of fraud, including advanced technological algorithms, longer data history, and frequent machine learning model updates. Together, this allows Capital One to react to anomalies quickly and more proactively get ahead of criminal trends.

Even as technology constantly evolves, one thing remains constant: the customer focus. Customers can feel better protected when they are alerted to potential fraud in real-time— they can easily report fraudulent transactions, lock their card, continue to spend on valid purchases, and receive verification when a new card is on the way, all without ever having to pick up the phone. 

Ultimately, the application of AI and machine learning to important business functions like fraud mitigation helps Capital One provide its customers greater protection, security, confidence, and control of their finances.

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