# How speech recognition and AI are fighting fraud in financial services 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-08
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: AI Voice Recognition Technology in Anti-Fraud Strategy
Meta Description: Discover how AI voice recognition technology is revolutionising fraud prevention in the financial industry, providing comprehensive cover while enhancing
URL: https://financedigest.com/how-speech-recognition-and-ai-are-fighting-fraud-in-financial-serviceshtml

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_By_ **_Nigel Cannings,_** _CTO at Intelligent Voice_

Rapid technological advances have created a fast-evolving culture within fraudulent organisations and individuals. Keeping ahead of these fraudulent groups is a [challenge for the finance](https://www.financedigest.com/from-fragmented-systems-to-unified-cpm-unicredit-prepares-for-todays-finance-challenges.html "FROM FRAGMENTED SYSTEMS TO UNIFIED CPM – UNICREDIT PREPARES FOR TODAY’S FINANCE CHALLENGES") industry, especially as the fast digitisation movement (exacerbated by the Covid-19 pandemic) has led to a significant shift toward the dominance of digital communications. Fraudsters are now able to hide behind a [screen or phone](https://www.financedigest.com/almost-1-in-3-never-fix-their-damaged-phone-screens.html "Almost 1 in 3 never fix their damaged phone screens"), rarely speaking to any employee more than once.

This makes it far easier for them to fly under the radar – that is unless [companies have adopted AI voice recognition technology](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies"). The combination of Artificial Intelligence and voice recognition [technology is facilitating far more comprehensive anti-fraud cover for financial](https://www.financedigest.com/shakedown-on-horizon-for-financial-technology-world.html "Shakedown on horizon for financial technology world") businesses. It keeps them consistently to speed with evolving [fraudulent activity](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY") without the need for constant employee retraining and the consistent need for employees to detect fraud themselves (which can detract from good customer service). Overall, speech recognition and AI hold the key to the [future of anti-fraud strategy in financial services](https://www.financedigest.com/the-future-for-financial-services-is-digital-engagement.html "The future for financial services is digital engagement").

**What roles do machine learning and voice recognition play in** [fraud prevention?](https://www.financedigest.com/payroll-fraud-and-how-to-prevent-it.html "Payroll fraud and how to prevent it")

Combining AI processes with traditional voice recognition technology provides [innovative solutions to the constantly evolving nature of fraud](https://www.financedigest.com/2021-predictions-less-fraud-shifting-consumer-behaviour-and-accelerating-pace-of-innovation.html "2021 predictions: less fraud, shifting consumer behaviour and accelerating pace of innovation") in the finance industry. New [technology has led to the introduction of the automatic structuring of audio and video](https://www.financedigest.com/how-video-technology-continues-to-boom-in-the-education-sector.html "How video technology continues to boom in the education sector") data on trade floors and online meetings. The basic [processing behind](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind") this – GPU-powered transcription combined with NLP (Natural Language Processing) – has been in use since 2014. Businesses are now becoming more aware of how these processes assist in understanding compliance risks (for example compliance with anti-fraud regulations) and [sales enablement](https://www.financedigest.com/why-sales-enablement-is-the-trend-to-watch-out-for-in-2023.html "Why sales enablement is THE trend to watch out for in 2023"), all from the same dataset.

Most importantly, by removing the time-consuming and potentially erroneous [detection of fraud](https://www.financedigest.com/the-clues-to-detecting-fraud-are-hidden-in-relationships.html "THE CLUES TO DETECTING FRAUD ARE HIDDEN IN RELATIONSHIPS") – and subsequent tracking of behavioural features indicating fraudulent intent – fraudulent behaviour can be identified as early as the first phone call. Machine learning (the process by which computer algorithms evolve independently) allows [employees in contact centres to focus their attention on providing the best possible customer service](https://www.financedigest.com/73-of-employees-in-the-banking-and-financial-services-industries-are-looking-for-better-physical-and-mental-wellbeing-support-in-the-workplace.html "73% of employees in the banking and financial services industries are looking for better physical and mental wellbeing support in the workplace"). The potential distraction provided by the need to detect fraudulent intent independently is removed, leaving contact centres fortified with an end-to-end [fraud management strategy](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ").

**What are the different features recognisable by AI?**

AI voice recognition [technology such as LexiQal has been developed in cooperation with law enforcement behavioural experts](https://www.financedigest.com/from-the-experts-5-payment-technology-trends-to-look-out-for-in-2016.html "FROM THE EXPERTS: 5 PAYMENT TECHNOLOGY TRENDS TO LOOK OUT FOR IN 2016"). This ensures the greatest degree of accuracy in automated fraud [detection systems](https://www.financedigest.com/the-fall-detection-system-market-to-show-innovation-based-steadiness.html "The Fall Detection System Market to show innovation-based steadiness"). The system itself can detect emotion, tone, speech patterns, specific language features, and more. Features such as negation, hedging, or hesitancy are frequently recognised as key indicators of fraudulent intent, which can be identified and recorded by voice recognition machine learning. Overall, the broad range of features recognisable creates the most comprehensive fraud detection, with minimal involvement from contact centre employees.

**How can voice recognition AI positively** [impact other areas of financial services?](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud")

While fraud detection is [understandably a core focus for many financial](https://www.financedigest.com/10-ways-to-make-your-financial-model-easier-to-understand.html "10 Ways to Make Your Financial Model Easier to Understand") companies, it is vital to ensure anti-fraud measures do not disrupt the balance with customer service. By automating fraud detection, companies can reduce the scrutiny of genuine customers who may be deterred from using [financial services](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") where they feel unduly pressured by employees. [Customer service](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") agents will instead be empowered to maintain high levels of service, while fraud prevention measures are present in the background.

Voice recognition and AI are also becoming increasingly [important in maintaining regulatory compliance and reducing](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD") fines. Regulatory restrictions are increasingly interconnected, making compliance more complex. This is exacerbated by the post-pandemic [boom in the use of other online communications such as Zoom and Teams](https://www.financedigest.com/brand-metrics-bolsters-client-services-team-as-brand-lift-measurement-booms.html "Brand Metrics bolsters client services team as brand lift measurement booms"), which are being examined more closely due to the acceleration of flexible, hybrid working. Applications such as these are featured heavily in both internal meetings and customer communications. Maintaining comprehensive [records of these interactions improve a company’s ability to demonstrate compliance](https://www.financedigest.com/red-box-recorders-launches-worlds-first-automated-audio-recording-compliance-verification-tool.html "RED BOX RECORDERS LAUNCHES WORLD’S FIRST  AUTOMATED AUDIO-RECORDING COMPLIANCE VERIFICATION TOOL"), especially when challenged.

The data collected from voice recognition technology is also applicable to [customer protection and sales](https://www.financedigest.com/yum-beats-sales-estimates-as-customers-flock-to-kfc-taco-bell-deals.html "Yum beats sales estimates as customers flock to KFC, Taco Bell deals") enablement. Through analysing the success of different approaches used by customer service agents, [companies can create a more accurate and measurable sales enablement strategy that places customers](https://www.financedigest.com/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companies.html "Disconnected customers are one of the biggest problems facing financial companies") at its core. In addition to this, the language and speech detection features of voice recognition AI can be used to identify when [vulnerable customers](https://www.financedigest.com/the-fca-is-taking-immediate-action-on-customer-vulnerability-but-how-does-this-impact-advisers.html "The FCA is taking immediate action on customer vulnerability; but how does this impact advisers?") (such as the elderly, adults with disabilities, or young adults) are confused or uncertain. From this information, customer [services agents can be made aware of when additional measures need](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") to be implemented to help these vulnerable individuals. More detailed information and explanations of financial policies can be offered, and where necessary, the relevant [support services](https://www.financedigest.com/uk-gives-bbc-world-service-20-million-pounds-to-support-english-language-broadcasting.html "UK gives BBC World Service 20 million pounds to support English language broadcasting") external to the company can be contacted.

**_About Author:_**

_Nigel Cannings is the CTO at Intelligent Voice. He has over 25 [years’ experience](https://www.financedigest.com/2021-the-year-of-buyer-experience.html "2021: The year of buyer experience") in both Law and Technology, is the founder of Intelligent Voice Ltd and a pioneer in all things voice. Nigel is also a regular speaker at [industry events](https://www.financedigest.com/are-event-suppliers-being-disproportionately-affected-by-the-coronavirus-and-how-can-the-industry-resolve-this.html "Are event suppliers being disproportionately affected by the coronavirus, and how can the industry resolve this") not limited to NVIDIA, IBM, HPE and AI Financial Summits._


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