Zest AI has introduced a new tool to help banks and credit unions identify fraudulent activities during the loan approval process. The tool, called Zest Protect, uses artificial intelligence (AI) to detect different types of fraud, including those created by AI itself.
Fraud cases have risen by 69% in 2023, according to the Federal Trade Commission, especially among community banks and credit unions. Zest Protect was created to address this increase in fraud by quickly spotting suspicious activity.
Adam Kleinman, head of strategy at Zest AI, said that Zest Protect aims to boost lenders’ confidence by more accurately identifying fraud. The tool uses machine learning to instantly detect first-party and third-party fraud, and it can also identify income inconsistencies during the loan process.
With Zest Protect, lenders can adjust fraud detection settings based on their specific needs. The tool also provides access to data and analytics to help prevent new types of fraud.
AI is becoming a popular choice for financial institutions to prevent activities like money laundering and bank fraud. A recent report found that over 40% of financial institutions have seen an increase in fraud, and 70% are now using AI and machine learning to combat it.
However, building AI tools can be expensive, which is why many financial institutions rely on third-party vendors like Zest AI to provide these advanced fraud detection solutions.
Source: pymnts
