Tech with behavioural analysis can prevent financial frauds, says Das

Technology, combined with behavioural analysis, can go a long way in analysing 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.

Technology, combined with behavioural analysis, can go a long way in analysing 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 of 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 added.

Mr. Das said Artificial Intelligence (AI) capabilities are 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.