Financial institutions are increasingly turning to Data Science and Artificial Intelligence (DSAI) technologies to fortify their defenses against the growing menace of cyber security threats, often exacerbated by the very AI tools designed to combat them.
“The trend is clear — I expect that the influence of AI, especially in our sector, is set to grow. Our verification systems need to be upgraded. Through AI, we can enhance fraud detection accuracy by as much as 85%. The shift is inevitable. It’s coming, and we have to be ready,” according to Erika Legara, Director and Expert on Data Science and Artificial Intelligence at Rizal Commercial Banking Corp. (RCBC) as she highlighted the transformative impact of AI on banking operations. She stressed the urgent need for modernizing verification systems and bolstering fraud detection capabilities within the industry.
To complement these technological advancements, financial institutions such as RCBC are prioritizing employee training and awareness to strengthen their cyber-security framework. The bank has strategically invested in 51 rigorously validated AI models, supported by a team of 40 data scientists with diverse expertise in statistics, physics, mathematics, and engineering. This collaborative team ensures that each project is not only data-driven but also aligns with ethical standards, focusing on extracting actionable insights.
One notable application of DSAI at RCBC involves analyzing customer data and transaction histories. By employing responsible AI models, the bank identifies tailored product offerings that foster stronger customer relationships and drive revenue growth. These models also assess various financial metrics, including credit history and income levels, to accurately determine applicant creditworthiness.
In the realm of cybersecurity, RCBC’s AI models employ a comprehensive range of technologies, such as anomaly detection systems, Machine Learning algorithms, Natural Language Processing (NLP), behavioral biometrics, predictive analytics, network traffic analysis, and fraud scoring systems.
The escalating threat of cyber fraud utilizing AI is evident in sophisticated phishing attacks. These attacks employ AI-generated emails to mimic legitimate correspondence, deceiving users into disclosing sensitive information or clicking on malicious links. AI-powered deep fake technology enables cybercriminals to create convincing audio and video impersonations, facilitating social engineering attacks and manipulation of digital identities.