32 banks in Taiwan announced the establishment of an anti-fraud alliance, which aims to use AI to detect and prevent financial fraud, on Monday. The alliance will utilize an AI detection technology developed by Taipei Fubon Bank and the Interior Ministry’s Criminal Investigation Bureau.
The technology uses more than 50 dynamic transaction risk parameters to identify suspicious accounts more efficiently and accurately. According to Taipei Fubon Bank’s statistics, it has successfully blocked 416 cases of fraud from January to October of this year, preventing a loss of more than NT$410 million (around US$12.7 million). The monthly number of high-risk cases has also decreased by 99%, and the detection rate of suspicious accounts has increased by 620 times.
The alliance plans to implement the technology in all 32 banks by June 2024. The expansion will cover more than 4,300 branches.
According to statistics, fraud has become the most serious type of crime in Taiwan in the past three years. The alliance brings together the public and private sectors to share resources and expertise to protect consumers from fraud.