'AI' Could Help Credit Managers Fight Financial Crime - CPA

‘AI’ Could Help Credit Managers Fight Financial Crime

21st February 2018.

Financial crime is an ever-present risk for the sector, with many financial institutions impacted by a range of different fraudulent activities. There are steps that credit managers can take to not only protect their business but to stop these crimes from occurring in the first place.

While our technology and business concepts evolved, so did our criminals. No longer discouraged by a locked door- or file- more sophisticated strategies are warranted, to stop these shady characters from destroying the workplace. Criminality is greatly feared in the financial sector due to the high volumes of sensitive information that is stored on individuals and businesses. Utilising new technology can help businesses deter attacks, as well as act as the first arm of defence.

Financial crime is no longer just a ‘big business problem’ with fraud plaguing small businesses just as much. Unlike larger firms, however, some small businesses lack the skills or the funding to fight back The Credit Protection Association aids many of our small business members with reviving their cash flow, whether it’s through debt recovery or our credit management products. Placing further emphasis on your cash flow can not only help you expand your business but also keep it protected from outside attacks.

Andrew Simpson, chief operating officer of CaseWare Analytics, insists that businesses need to take a more dynamic approach to combating fraud. Mr Simpson suggests a mix of business rules and machine learning will not only tackle financial crime but help businesses learn from evolving criminal behaviour.

Nonetheless, many small business owners cannot afford digital defences, with their ineffective procedures costing them greatly. According to the Association of Certified Fraud Examiners (ACFE), 30 percent of fraud victims are from small businesses, and 60 percent do not recover any of their losses.

The same report also found that small businesses have fewer anti-fraud controls in place than large organisations, making them especially vulnerable. “Machine learning and AI present an amazing and cost-effective opportunity for anti-fraud departments in small companies to evolve their programmes and increase the effectiveness of their efforts,” says Mr Simpson.

Embracing the digital age is both an advantage and a disadvantage; while it creates the opportunity for the cyber attacker in the first place, it also offers ways to stop them. If businesses want to survive in the competitive market spending money on technology is inevitable. Whether you’re adding online chat to your company website, or setting up firewalls on all your computers, having that digital edge is essential. Financial crime is becoming a serious issue for many across the sector, and having outdated systems is putting your business in a further vulnerable position.

Here at the Credit Protection Association, we provide our members with the cash to enhance their business; whether it’s put towards renovating their offices or tightening security procedures. Our debt recovery service chases down late payers and non-payers and gets our members back what is theirs.

Does you cash flow need a boost? Do you need t tighten your anti-fraud systems? Get in touch with CPA today!