Technology combined with behavioural analysis can prevent financial frauds: Das
Technology, combined with behavioural analysis, can go a long way in spotting anomalies in consumer behaviour and help in understanding and preventing frauds, Reserve Bank of India Governor Shaktikanta Das said while speaking at the annual conference of RBI Ombudsman in Mumbai.
Suspicious consumer behaviour that could be monitored include transactions during odd hours, transactions against usual patterns and unauthorised beneficiary additions.
He said, however, that on the flip side the utilisation of such technologies without appropriate safeguards may lead to compromise in customer data.
“The possible issues that may arise include invasion of privacy or subtle manipulations based on consumer profiling to nudge [the customer] into certain services that may not be the right fit,” he said.
“Appropriate safeguards need to be put in place in this regard,” he further said.
Mr. Das also said that Artificial Intelligence (AI) capabilities are currently being utilised to complement customer service through personalised interaction, chatbots and virtual assistants tailored to specific products.
Its deployment in prevention of frauds, identity verification, vulnerability mitigation and data protection were, however, at nascent stages, he added.
Mr. Das said that under the Integrated Ombudsman Scheme, the Ombudsman has been entrusted with the responsibility of upholding the trust of ordinary citizens.
“The RBI Ombudsman is expected to provide an independent and impartial avenue to citizens for their unresolved grievances. They have the power to facilitate delivery of fair redress of customers’ grievances,” he said.
“There have been significant improvements in the implementation of the integrated Ombudsman framework of the Reserve Bank after the launch of RBIOS, 2021,” he added.