Using Artificial Intelligence (AI) To Help Keep Your Financial Data Safe

Retailers can be susceptible to the loss of their sensitive financial information. Hacking and other attacks on financial data can lead to identity theft, fraudulent business transactions and expensive solutions to resolve the attack. To fix the problem, retailers must consider a variety of options, including AI. By incorporating AI into electronic systems, retailers can eliminate weaknesses and increase the consistency of system security.

Detecting Fraud

Depending on humans to identify fraud increases the likelihood of failure, which emphasizes the benefit of an AI framework to detect in advance. Financial fraud for retail businesses comes in a variety of methods, including:

• Phishing: Using communications like text messages or emails to prompt a person to enter the company’s financial information.
• Social Engineering: Increasing the level of communication with an individual, building trust and improving the chances of successful infiltration.
• Malware: Installation of harmful software on the business’s networks, which can compromise data or shut down the system.
• Hacking: Persistent attempts to get past a system’s security to shut it down or hold operations hostage in exchange for a ransom.

AI is effective at preventing fraud by detecting it before humans have a chance to engage. For example, an AI system can use algorithms to flag potential phishing emails, so that the target never sees the message and cannot interact with it.

Preventing Malicious Attacks

The best way to minimize damage from malicious attacks is for retailers to prevent them in the first place, and AI can help. Attacks usually rely on some kind of weakness within the system, which might be as simple as an off-hours attack when few staff members are available to address it. AI can explore the security of the system and identify weaknesses, as well as highlighting the most common methods that hackers may attempt to gain access to the system. Knowing about weaknesses in advance gives security providers time to evaluate and test solutions, to improve the robustness of the protection. 

Ensuring Data Encryption

Retailers work with sensitive data in varying ways, requiring updated encryption that does not break under normal circumstances. Encryption involves the protection of data, so that even someone who gains access to the system may not necessarily be able to read or transmit the information. Encryption is key for all types of financial data, from sales reports to SEC reporting software. Businesses may struggle to maintain encryption, especially if they provide access to the information from various staff members or devices. AI can evaluate the system and identify points where data might lose encryption, allowing security personnel to fill in the gaps. AI also maintains encryption during testing and backups, to improve the consistency of security.

Running Security Systems 24/7

Response to an attack often makes the difference between an unsuccessful attempt and the loss of sensitive financial data. AI provides additional support to security staff, especially during off-hours. When someone attempts to gain access to the system with suspicious credentials, AI can use algorithms to find the source, immediately limit access, and send alerts to relevant parties. Although AI may not be able to completely resolve an attack in progress, it can raise the alarm early enough that staff members can get the information they need to address the situation promptly.

AI is revolutionizing technology across many industries, and its potential to protect retailers’ financial data is notable. AI can handle routine tasks that humans might get wrong, with a higher degree of transparency and accuracy. Implementing these tools gives retailers comprehensive data security, with the ability to evaluate threats for the future.

Contribute by Adam Nguyen is Senior Vice President for Donnelley Financial Solutions™, a global financial solutions company. He has many years of experience in the industry and focuses on the company’s financing activities and daily operations.