Across the globe, the C-suite of financial institution fear the unknown. In fact, most of us fear the unknown but FI executives can get into serious regulatory, legal, financial and reputational hot water – especially with unknown unknowns. What do I mean by that? In simplest terms, an unknown unknown is an unspecified threat that is also undiscovered. Some of the largest fines imposed on financial institutions over the last two decades were because of unknown unknowns – the financial institution knowing neither that an event had occurred nor what it was until it was too late. Some of the largest criminal “wins” to date were unspecified schemes where the bad actor had a dwell time of years. In fact, many times, an unknown unknown event is only discovered because a conspirator confesses or gives up his cronies.
To bring this home, imagine playing craps in a casino. You’re so confident that you will win that you’re gambling with your life savings. You’ve studied the rules, practiced the math, and feel invincible as the dice hit the table. The problem is, when we see risk we often expect a degree of fairness; this rarely happens however, and when it does, it’s purely by chance. Today’s financial institutions are sitting at the craps table and hoping the dice roll in their favor. They are in an unremitting war, battling criminal syndicates, rogue states, and individual bad actors that get more sophisticated by the day. FI executives are apt to lose with each throw of the dice as the rules are in flux and the wager yet to be placed. In other words, the legacy rules-based technology that they’ve been using to prevent and identify threats is ineffective against such cunning foes.
What is the answer? Enter artificial intuition or what we call IntuitiveAI. IntuitiveAI, which takes a new and more effective mathematical approach to identify and prevent financial crime, mimics the powerful and effective way humans make decisions; and it is helping financial institutions stay one step ahead of the criminals. Returning to our casino analogy – IntuitiveAI helps executives completely side-step the shifting rules to all but win the game before it is played. Artificial intuition or IntuitiveAI is a powerful weapon to add to any financial firm’s crime prevention program.
To learn more about ThetaRay’s unknown unknown detection capabilities contact us [+1(646) 757-4956].