How to Use AI and Expert Analysis for Fraud Detection

Last week I wondered aloud if JP Morgan won’t have risk analysts in ten years. But how do you shrink a 2000-person team down to 100 AI-first super analysts? Here’s how I’d do it 👇 1️⃣ Unify the view. You should send every payment, merchant data, dispute, decline, refund and open-web signal into one data layer. Disparate sources for different parts of your risk processes is a blocker for any AI unified view 🖥️ 2️⃣ Codify judgment. Translate every “it depends” inbox decision into features, rules or even a SOP a model can test in real time ⚙️ 3️⃣ Automate the 95%. You can let the AI agents approve clean cases and block obvious fraud in milliseconds, so tickets never pile up for your analysts. Way more than traditional automation 🤖 4️⃣ Elevate the humans. At this point, analysts should graduate to model tuning, edge-case forensics, and exposure strategy instead of paging through spreadsheets 🔍 5️⃣ Fail fast, release faster. Definitely hold payouts the instant exposure spikes; release them the moment a merchant is in all-clear. Exposure mitigation shouldn’t wait for a meeting ⏱️ 6️⃣ Close the loop. Now, you can start to improve. Feed every false positive and true hit back into the rules and SOPs weekly 🔄 Do this, and your next “hire” is an API call, not another cubicle. And critically...the role of the analyst doesn’t disappear but gets elevated. It evolves into something far more strategic ✅

I'm seeing a lot of financial institutions exploring how AI can reimagine the dispute workflow—but success depends on finding the right mix of automation and human insight. 🚀 Key statistics that are driving this conversation: 💸 61% of customers judge their bank more on how disputes are handled than on the fraud event itself 🏦 66% would consider leaving their bank over a poor dispute experience 🚧 14% of banking leaders cite regulatory change as the biggest issue impacting the industry Here's what I'm sharing with leaders as they map out AI in their dispute operations: - Start targeted: Use AI for complex pattern recognition and analysis, while automating routine documentation and intake tasks. - Consider pre-trained models: These can spot fraud patterns from day one, so your team gets value immediately instead of waiting months to see improvement. - Take small steps: Start with use cases like auto-routing disputes or summarizing documentation. Build team confidence before expanding into more advanced automation. - Prioritize built-in compliance: Look for solutions with transparent decisioning and strong audit trails. The underlying architecture is just as important as the outcomes. The most successful implementations I've seen combine AI technology with human expertise—where AI does the heavy lifting on analysis and pattern recognition, while your team brings judgment, empathy, and nuance to customer interactions. If your team is working through friction points in dispute resolution, message me or comment below—let's connect on practical ways AI could help solve for compliance, efficiency, and trust. ❄️ #paymentselsa #artificialintelligence #bankinginnovation #disputeresolution

AI is a tool! Not the answer to fraud by itself. Artificial Intelligence is transforming fraud detection. It's fast, scalable, and relentlessly vigilant. But let's be clear: AI is not the end-all-be-all solution. Too many businesses, and even some banks, are falling into a dangerous mindset: thinking that AI alone will prevent fraud. They install sophisticated systems, then step back, assuming the job is done. That’s a costly mistake. Fraud prevention is not a set-it-and-forget-it game. It requires human intuition, context, and continuous oversight. AI can detect anomalies, but it can’t always understand intent. It flags behavior; people interpret risk. When we over-rely on the tech and underinvest in the talent behind it, we leave ourselves vulnerable. The most effective fraud strategies are hybrid: ✅ AI to process massive data sets and detect patterns in real time ✅ People needed to ask better questions, make judgment calls, and see what machines miss Crimes evolve. So must our defenses. AI is a powerful ally, but it's the people using it that make or break your defense strategy. To the leaders reading this: Don’t just buy the tool. Build the team that knows how to wield it. #FraudHero #fraud #scams #AI #fraudprevention #training