Seoul, South Korea - Tossbank's use of an internally developed, AI-powered, real-time ID anomaly detection system represents an approach to fraud prevention in the banking industry.
Why it matters:
Using such a system, which caught nearly 600 fake IDs within six months of its launch, has implications for how banks can protect themselves against identity theft and financial fraud.
The bank's efforts in this area come in response to increased financial fraud cases involving hidden cameras, where fake accounts or fraudulent loans are made using stolen ID photos.
Tossbank's implementation of the real-time detection system demonstrates a method to address the growing concern about financial fraud, particularly in non-face-to-face identity verification.
The Key Points
- Intelligent fraud prevention: Tossbank's system operates with 94% accuracy and detects inconsistencies in ID photos, triggering restrictions on financial transactions pending re-verification.
- Training & implementation: The system was developed using 80,000 ID photos for training and validated with 50,000 manual verification cases without external assistance.
- Triple verification process: A rigorous verification process, including system results cross-checked with manual verification, ensures accuracy.
- Financial Impact: The detection of over 600 cases of fake IDs helped prevent potential financial fraud losses of approximately KRW 12 billion ($9 million).
The Big Picture:
Tossbank's decision to develop this system in-house emphasizes internal capabilities and technology rather than relying on external solutions.
In addition, the savings attributed to preventing financial fraud through this system provide context for the economic impact of adopting such technologies.
By preventing potential losses, the bank not only protects its financial position but also improves the overall security of its financial services.
The system's design, which includes a triple verification process and emphasizes manual verification for difficult-to-identify cases, is consistent with the bank's strategy of prioritizing security without increasing inconvenience to customers.