Behavioral AI is an AI tool that is growing immensely in popularity. Every move you make and every purchase or message you leave on the website, behavioral AI knows it. This strategic move helps it stay a step ahead of hackers and fraud.
Understanding Behavioral AI
Behavioral AI is an AI subset that studies and analyzes human actions and behaviors. The best way to understand behavioral AI is that its purpose is to identify and note patterns of online behaviors and interactions cataloged in databases. This stored information goes into AI’s algorithms for optimum performance.
How Does Behavioral AI Work?
Simply browsing through an e-commerce site or buying something online is closely monitored and recorded by behavioral AI. This is a vital first step towards fraud detection. Virtual every online business, banking, or grocery delivery service requires members to create an online membership.
You might notice that in addition to entering your name, password, and where you live, you might be asked to enter parts of your social security number. You might also be asked to submit your photo identification and a selfie to verify your identity further. This form of behavioral AI is known as biometrics. By having this critical data on file, virtually all online businesses have a high rate of authenticating your identity to prevent fraud.
Behavioral AI for Real Time Fraud Detection
The nature of e-commerce sites, real money online casinos, and online banking institutions is to make high-volume payments or withdrawals. With such a high volume at a moment’s notice, that’s too much attention to detail for a regular human digital network team to tackle. Because it only takes a split second for hackers to infiltrate.
But because behavioral AI uses multi-factor authentication and has your biometrics and habits on file, it is the ultimate digital warrior soldier to combat real-time fraud. For example, when logging into your online account and using your email and password, the site might send you a security code pin. Unless you enter the correct code and in as few attempts as possible, you will be locked out of your account.
The second step is to understand your regular buying and transactional patterns. For example, if you usually use PayPal or Venmo to make purchases, and you suddenly get a credit card through behavioral AI, further verification might be asked. Not going through the verification might result in your account being locked out. Also, when using any payment method, it’s typical for the online site to ask you to re-verify your account for security purposes.
Challenges and Limitations
While AI technology continues to improve leaps and bounds, it’s still imperfect. While it continues to champion anti-fraud measures, it can sometimes get it wrong. For example, even though a member normally uses PayPal for online transactions, that member might be the rightful owner of a new credit card. Sometimes, wrong analysis and false positives that lead to account delays or lockouts can alienate members.
Conclusion
While behavioral AI is far from perfect, its business models are constantly being updated and improved. As technology improves and more consumers shift from retail to online business, look for behavioral AI to improve its anti-fraud detection measures with new data input.