Traditional fraud systems often depend on fixed rules. They flag transactions above a certain amount, unusual transfer frequencies, or activity that crosses predefined thresholds. These methods can work well for straightforward payment fraud, but sophisticated loan fraud is rarely built around one suspicious transaction.
A fraudulent borrower may appear legitimate when viewed through a single data source. The warning signs often emerge only when banks connect company records, directors, GST information, KYC data, transaction activity, and other sources.
This is where AI-powered fraud detection becomes valuable.
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