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FraudOctober 25 2023

Fraud detection and prevention: have automated tools gone too far?

Have financial institutions got the balance right between human and automated decision-making when it comes to fraud detection and management? Or are customer accounts being closed simply because a machine says no?
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Fraud detection and prevention: have automated tools gone too far?Image: Getty

Opening a bank account, making a payment or applying for a loan is relatively easy nowadays. Most of these financial services can be accessed via mobile or digital banking apps, which offer consumers convenience and speed.

But many customers are seemingly oblivious to the automated processes and decision-making that goes on behind the scenes to ensure that their financial lives online comply with anti-money laundering and preventing terrorist financing regulations.

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Anita Hawser is the Europe editor at The Banker. For the past 20 years, Anita has worked as a freelance journalist for a range of banking, finance and tech titles covering topics such as cybersecurity, financial crime, cryptocurrencies, payments, trade and supply chain finance. Before joining The Banker, Anita was Europe editor at Global Finance.
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