Experian Invests Strategically in Resilient AI to Combat Fraud and Monetary Offenses
Financial institutions are stepping up their efforts to combat sophisticated Authorised Push Payment (APP) fraud and money laundering, with a strategic partnership between Experian and Resistant AI at the forefront.
The collaboration aims to safeguard not only the operations and reputation of financial institutions but also their customers. Key elements of this partnership include:
- AI-Powered Behavioural and Anomaly Detection: Resistant AI brings advanced AI models designed to detect and prevent fraud and money laundering in real time. These models focus on identifying abnormal transaction patterns and subtle behaviours indicative of fraud that traditional monitoring systems may miss.
- Tailored APP Fraud Prevention Solution: Given that APP fraud accounts for 47% of fraud faced by UK businesses, Experian and Resistant AI’s first joint initiative is a specialized solution targeting APP fraud. This solution enables banks and payment providers to gain enhanced visibility into counterparties — crucial for tracing money mule networks and real-time cross-bank transfers commonly used to launder money and execute APP fraud.
- Compliance with Privacy and Data Sharing Constraints: The solution is designed to work effectively within strict data privacy regulations, enabling financial institutions to detect suspicious activity without violating privacy laws or undertaking costly infrastructure changes.
- Seamless Integration with Existing Systems: This AI-powered solution complements current transaction monitoring processes without disrupting operations or requiring expensive transformations, allowing institutions to proactively halt suspicious transactions before processing.
- Combined Data and Identity Verification Expertise: Experian contributes its extensive data assets and expertise, while Resistant AI provides sophisticated modeling. Additionally, Experian integrates identity insights technology, such as Mastercard’s identity verification tools, to strengthen identification and prevent synthetic identity and application fraud alongside APP and money laundering efforts.
- Unified Fraud and AML Operations ("FRAML"): Many businesses are merging fraud detection and Anti-Money Laundering (AML) compliance teams to create unified operations. This approach, supported by AI, improves detection capabilities and regulatory compliance simultaneously.
Together, these strategies enable financial institutions to proactively identify and intercept new or previously unknown fraud and laundering methods, improve accuracy in decisioning, and enhance customer experience without excessive friction.
Martin Rehak, CEO of Resistant AI, pointed out that financial criminals are employing AI techniques to innovate and scale attacks, and that the boundaries between fraud and AML are becoming increasingly blurred. He emphasised that the use of AI in financial crime prevention stacks is no longer optional.
The solution will be available later this year and is designed to complement existing transaction monitoring systems. According to David Bates, Managing Director of Credit and Verification Services at Experian UK&I, the landscape and sophistication of financial crime have evolved, necessitating the use of advanced technologies to enhance visibility and responsiveness.
In summary, the Experian-Resistant AI partnership demonstrates a forward-looking, AI-enabled approach combining advanced anomaly detection, robust identity verification, regulatory compliance, and operational integration to tackle the growing complexity of APP fraud and money laundering in financial services. The partnership's first initiative will be launching a tailored APP fraud prevention solution, bolstering Experian's fraud and financial crime offering.
- In an effort to safeguard both the reputation and the customers of financial institutions, the collaboration between Experian and Resistant AI aims to combat sophisticated Authorized Push Payment (APP) fraud and money laundering,,utilizing advanced AI models, regulatory compliance, and seamless system integration.
- Recognizing that financial criminals are using AI to innovate and scale attacks, the Experian-Resistant AI partnership intends to launch a specialized APP fraud prevention solution, which will complement existing transaction monitoring systems, thereby improving decision accuracy and enhancing the customer experience.
