Automation
Fraud Detection (AI)
AI fraud detection uses ensemble models — rule-based screens, classical machine learning, and large language models — each catching what the previous layer missed. Frontier LLMs add value primarily on novel fraud patterns expressed in natural language: social engineering, account takeover dialogues, fake document narratives. Pure-LLM fraud detection is rare in production; ensembles are the norm and the right architecture for 2026.
Related terms
- Sanctions Screening — Sanctions screening is the regulator-mandated check of customers, transactions, and counterparties against OFAC, UN, EU, and UK sanctions lists.
- Model Risk Management (MRM) — Model risk management (MRM) is the framework banks and insurers use to validate, monitor, and govern statistical and AI models that affect consequential decisions.