Nepal Clearing House Limited (NCHL) will resort to Artificial Intelligence (AI) to detect and eliminate fraud that occurs in digital transactions. The move comes in an effort to neutralize unauthorized access to electronic transactions and scams that have troubled the fintech industry in the recent past.
NCHL Chief Executive Officer (CEO) Nileshman Singh Pradhan said that the entity will use an AI-powered Fraud and Risk Management System. He said that the company is in the final stages of its implementation.
sDigital Transaction Limit of Mobile Banking, Internet Banking, and Wallets in Nepal
NCHL to use AI to minimize transaction fraud
NCHL’s AI system will observe the transaction pattern of customers, and if anything suspicious or irregular is found, it will be reported to the concerned bank or financial institution.
In the recent past, the instances of fraud and scams in banking have soared, leaving many unsuspecting users scammed out of their money. Lack of digital literacy and awareness, as well as modern hacking tools used by hackers, have challenged user safety. Now, NCHL is employing AI to curb fraud.
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“We are currently developing an AI-based fraud and risk management system,” Pradhan said. “We are gradually implementing new security technologies. We believe this will help in reducing risks through new mechanisms and processes.”
The NCHL CEO further added that the technology will be able to identify any unusual deposits or transactions in an account and provide information to the concerned BFI. He said that the AI-based system will help make the security of digital transactions more effective.