- Attempted fraud volume rose more than 20% every year for the last 5 years at J.P. Morgan.
- AI techniques like graph analysis and transformer models are being used to detect subtle patterns in fraud.
- Joel Kalamba, business analysis director at J.P. Morgan, stated that fraudsters evolve, but so do they, using AI to help detect subtle anomalies and sophisticated attacks.
- AI models are trained on millions of transactions and generate risk scores, aiding teams in deciding when to flag a payment for client review.
- The goal of using AI in fraud detection is to achieve more precise detection that helps stop fraud attempts while reducing false positives.
- Technology combined with strong internal controls is essential for keeping clients safeguarded, according to Kalamba.
J.P. Morgan has seen a significant rise in attempted fraud, with volumes increasing by over 20% annually for the past five years.
According to Joel Kalamba, business analysis director at J.P. Morgan, “Fraudsters evolve, but so do we—using AI to help detect subtle anomalies and sophisticated attacks.”3
The bank is leveraging advanced AI techniques such as graph analysis and transformer models to enhance fraud detection capabilities. These models are trained on millions of transactions, generating risk scores that assist teams in flagging potentially fraudulent payments for client review before they are processed.2
The goal is to achieve more precise detection that not only stops fraud attempts but also minimizes the friction and alert fatigue caused by false positives.5
Kalamba emphasized the importance of combining technology with strong internal controls, stating, “Technology combined with strong internal controls is what keeps clients safeguarded.”6
As fraud attempts continue to rise, J.P. Morgan's commitment to adapting its strategies through AI reflects a proactive approach to safeguarding clients against increasingly sophisticated threats.
“AI models trained on millions of transactions generate risk scores, aiding teams in flagging payments for review before release. Joel Kalamba, business analysis director at J.P. Morgan, emphasizes that technology combined with strong internal controls is essential for safeguarding clients.”
J.P. Morgan
