The Monetary Authority of Singapore (MAS) has announced that it is working with the banking industry, Government Technology Agency and the police to improve fraud detection through AI and machine learning.
MAS said in a statement on Monday that it is conducting a proof of value (POV) to explore AI/ML technology for pre-emptive fraud detection as part of a broader effort to leverage AI/ML for use cases across the industry.
By integrating data from five banks, POV aims to build a more robust and accurate AI/ML model that helps identify high-risk transactions and accounts. Rapid identification allows for timely assessment, intervention, and potentially reduces customer losses due to fraud.
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This illustration taken on June 23, 2023 shows the words AI (Artificial Intelligence) placed on a computer motherboard. Photo credit: Reuters |
To support POV, MAS provided industry partners with a secure data sharing environment governed by policies and protocols to protect customer information. The data used in POV remains confidential and protected with encryption technology. The bank account number used is hashed so that only the bank that provided it can determine the actual account number. Access to data is restricted to authorized personnel within a controlled setting that is continuously monitored through POV. All data used will be deleted when the POV ends.
According to MAS, the current POV lays the foundation for deeper industry collaboration that leverages AI/ML to enhance and complement financial institutions’ existing efforts in preventing and combating financial crime.
After assessing its effectiveness and learning from it, MAS may expand the scope and sophistication of the AI/ML models it uses to incorporate broader datasets and a broader range of use cases to further strengthen the financial system’s defenses against criminal activity.
