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Lynx Tech is rolling out an updated and more advanced version of its fraud detection AI tool, Daily Adaptive Models (DAMs). The new tool will first be rolled out in the United States, after which it will be launched in Europe. The models will automatically optimize themselves by learning from fresh data continuously without the need for manual updates.
According to UK Finance, fraud incidents have increased by 16%, with daily recorded losses surpassing three million pounds. Banks are depending more and more on AI-driven technologies to identify and stop complex financial crimes in real-time. Conventional Machine Learning (ML) models encounter issues such as data drift, which Lynx’s updated DAMs are designed to tackle.
Designed for Real-time Fraud Detection
The new models are specifically designed to detect illicit financial activities and covert fraud networks. It will offer continuous scans for real-time fraud detection and lower false positives. The models are designed to identify broader fraud networks rather than concentrating on monitoring individual transactions. This entails analysing interrelated behaviours across several accounts to uncover previously concealed fraudulent schemes.
Lynx says the new system could analyze up to 40,000 data points in real-time. The models were created after two years of research using unique algorithms and in-memory databases. The model will enable real-time detection as well as support quick integration to any architecture without causing operational disruption.
The company added that its latest update offers a more sophisticated comprehension of financial patterns across whole account networks. This will enable a more rapid and accurate identification of fraud attempts, resulting in a significant decrease in false positives. Additionally, the company has released a whitepaper that describes the creation and implementation of the technology.
A Lynx official pointed out that innovative AI solutions like these might be essential instruments in reducing exposure to fraud-related losses as financial institutions get ready for the UK’s updated APPF compensation regulations.
Financial Fraud on the Rise Despite Mounting Regulations
According to ACI Worldwide, losses from Authorized Push Payment Fraud (APPF) would exceed $6.8 billion globally by 2027. Additionally, the emergence of international penalties, heightened scrutiny of PEPs, and changing evasion strategies have shown flaws in traditional screening.
Lynx Tech CEO Dan Dica stated, “The financial crime landscape is changing quickly, and financial institutions need a solution that not only keeps up—but gets ahead.” “Our AI-powered fraud detection tool offers a solution that reduces operational cost, drastically cuts down false positive alerts, and helps financial institutions in maintaining compliance.”
The Lapse With Conventional Fraud Detection Systems
The inefficiencies of conventional fraud detection tools are often caused by their slow speed in detecting and stopping fraud before they are completed. It also significantly cuts down the high number of false positives produced by outdated systems.
Carlos Santa Cruz, Chief Technology Officer at Lynx, stated, “This breakthrough is the culmination of two years of rigorous research. We’ve developed state-of-the-art in-memory databases, algorithms, and low-level code that make our solution incredibly easy to integrate while keeping costs down and minimizing costs. In internal tests, our technology has demonstrated the ability to analyze up to 40,000 data points in real-time to identify fraudulent activities with remarkable precision, representing a quantum leap in detection.”
Credit: Landmark National Bank
Lynx Tech is an AI-powered software firm established to address fraud and financial crime problems for its clients. It has set new benchmarks for precision, speed, and scalability across global corporations by using cutting-edge AI technology to detect and stop fraud and financial crimes in real-time, proactively.
Lynx is committed to helping its clients transition from a reactive approach to a proactive one. It uses AI to detect and stop threats as well as provide valuable security analysis. Lynx remains the industry leader in accuracy, speed, and scalability for payment providers and financial institutions. Its updated Daily Adaptive Model promises improved performance and accuracy.
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