AI-Powered Fraud Detection Reduces Losses by 67%
The Challenge
A regional bank was experiencing increasing fraud losses despite multiple rule-based detection systems. False positives were overwhelming their investigations team, causing customer friction and operational inefficiency. They needed an AI strategy that could improve detection accuracy while reducing false positives.
Our Approach
We conducted a comprehensive AI readiness assessment, identified high-value use cases, and developed a phased implementation roadmap. Starting with transaction-level ML models, we progressively added behavioral analytics and network analysis. We established proper model governance and regulatory compliance frameworks throughout.
The Outcome
Fraud losses decreased 67% within 12 months while false positives dropped 45%. The investigations team now handles 3x the case volume with the same headcount. The bank has since expanded AI initiatives to credit risk and customer retention.
