Thailand accelerates AI development for fraud detection

Thailand is quickly adopting artificial intelligence (AI) to improve fraud detection in its financial sector. SAS Institute, a leader in data and AI, reports that the country is enhancing risk and fraud management to tackle financial crime effectively. According to Ian Holmes, a director at SAS, Thailand has a strong regulatory framework that supports collaboration between banks. This approach mirrors successful strategies used in Australia, Europe, and Hong Kong to fight financial crime. Thailand is also working on real-time payment protections to keep digital transactions safe. As part of these efforts, the process for opening new accounts has become more stringent to help prevent scams. Fraud extends beyond banking, affecting telecommunications as well, where fraudsters often exploit compromised phone numbers for social engineering attacks. A rising concern is known as authorized push payment fraud, where customers are tricked into sending money to scammers. AI is expected to transform fraud detection and anti-money laundering practices. Thailand's digital ID system will streamline identity verification, supported by AI for secure processing. Holmes noted that generative AI, including large language models (LLMs), is being tested to automate compliance tasks, potentially reducing manual work. For successful AI integration, it is essential to align technology with people and processes. David Asermely of SAS highlighted the importance of AI governance and understanding data inputs to ensure a good return on investments. Banks are preparing to adopt AI more widely, using models like LLMs to answer queries with oversight from a "judge" model that assesses the quality of answers. This combination of AI and human input helps ensure accuracy and reliability in AI systems. SAS also anticipates growth in fraud detection and risk management investments, particularly from financial and telecom companies addressing online scams. The company has invested $1 billion in AI development over the past three years to enhance its solutions in fraud and financial crime compliance, risk management, and customer insights.