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NPCI pilots AI models to keep




digital payment frauds in check


                                                            While one challenge is posed 
Our Bureau                                                  by the real-time nature of 
Chennai                                                     UPI payments  the other is a 

                                                            need to partner with banks 
As digital financial frauds                                 and get them to authorise 
rise  the National Payments                                 the decline of suspicious 
Corporation of India  NPCI                                  transactions  he noted 
is piloting an Artificial Intel-                              Highlighting the growth 

ligence Machine Learning                                    of fraudulent transactions  
 AI ML  engine to help flag                                 Krishnamurthy and other 
UPI IDs of scammers who                                     NPCI officials noted that in 

collect money from gullible                                 UPI  the frauds are more due 
users                         Viswanath Krishnamurthy       to how customers use the 
  NPCI s Chief Risk Officer   Chief Risk Officer  NPCI      platform rather than the in- 
Viswanath Krishnamurthy       BUOY GHOSH                    frastructure 
on Wednesday said that the    banks have given us the au-     Around 85 per cent of the 
organisation is now using AI  thorisation to decline such   customers are greedy and fall 
ML  in a big way  to identify transactions  in some cases   prey to investment and other 
likely fraudulent transac-    we alert the banks about it   trading scams  10 per cent 

tions and flag such accounts  Banks then make a call to the occur due to fear  such as di- 
by assigning a risk score to  customer to ask them if and   gital arrests  and the remain- 
them  NPCI s use of such      why they are undertaking the  ing 5 per cent are out of ig- 
proprietary AI and data ana-  transaction   Krish-          norance  he said 
lytical models started        namurthy said                   NPCI officials also said 
around 1 5 years ago and pi-    He added that NPCI has      that UPI is relatively safer 
lots with banks have been     already declined some trans-  than other forms of digital 

growing since then            actions this way with sup-    payments owing to use of 
   When someone is work-      port from banks               PIN  the linking of UPI ID to 

ing to get multiple people to                               devices and other features  
transfer money to their ac-   TEETHING TROUBLES              We are also increasing 
count  our AI models can as-  However  there are various    budget allocation to create 
sign a risk score to such ac- challenges to scale this and  user awareness around most 
counts based on the history   the organisation also faces   common scams   Krish- 
of money flow  While some      false positives   he admits  namurthy said
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