Just as it is impossible to predict the heights to which our technological evolution will take us, no one can anticipate the challenges that we will discover at those heights – challenges that we are in no way prepared to face.
This double-edged sword is increasingly felt in the area of online financial transactions, in which we entrust our hard-earned money and personal information to strangers, hoping that technology will protect us. The trouble is that the same technology that enables things like third-party payment and Electronic Funds Transfers provides cyber criminals the means to engage in a wide range of fraudulent activities.
This problem has reached epidemic proportions in the online and mobile gambling industry, costing the sector US$ 6.3 billion annually. Up until recently, fighting this has largely been a losing battle. But now a new solution to cyber fraud is becoming a very real possibility.
About AI and Machine Learning
Once considered to be the fantastical stuff of far-fetched Sci-Fi films, artificial intelligence (AI) is slowly changing the way we live. And it could be mobile casinos’ best chance in the fight against fraud.
AI (also referred to as machine intelligence, MI) refers to the phenomenon in which a computerized machine begins to operate on a basis resembling human intelligence. It is able to observe its environment and take certain actions in order to successfully achieve a particular goal.
Within AI, machine learning is the practice with the most potential to combat mobile and online fraud. In machine learning, artificial intelligence automates analytical-model building with the use of algorithms to interpret data without any specific human indication of “where to look”.
How AI can combat Fraud
The casino operators, law-enforcement officials, banks, and security companies for whom online fraud is a daily challenge will all tell you the same thing: online fraud is virtually impossible to track. This is because it is constantly changing, with fraudsters adapting their methods to find loopholes as each new security measure is introduced. The upshot of this is that real-time solutions are required to combat this sort of fraud.
Because AI enables computers to “think” independently, they are able to respond to any anomalies in the data they receive almost instantly. This means that no time is lost because of human eyes having to scan over data and come up with solutions. Computers are far faster and much less likely to miss anything. Further AI security measures like facial recognition and bio metrics are also likely to become commonplace in mobile casinos in the near future.