CSI, a leading provider of end-to-end fintech and regtech solutions, announced today it has partnered with Hawk AI, a leading global provider of anti-money laundering (AML) and fraud prevention technology for banks and payment companies, to deliver its latest products, WatchDOG® Fraud and WatchDOG® AML. The products’ artificial intelligence (AI) and machine learning (ML) models create multilayered, automated oversight that monitors, detects and reports fraudulent or suspicious activity in real time.
WatchDOG Fraud monitors transaction behavior to detect fraudulent patterns across all channels and payment methods. Using transaction data augmented by non-financial data such as IP addresses and device IDs, it protects businesses by detecting and preventing fraud in real time.
WatchDOG AML leverages the same AI and ML capabilities to analyze customer behavior, generate alerts and file reports in real time. It identifies suspicious activity and automatically creates suspicious activity reports (SAR) to reduce manual reporting and maintain compliance with Financial Crimes Enforcement Network (FinCEN) regulations. The product strengthens anti-money laundering programs for banks and non-bank financial institutions that are required to develop AML programs under FinCEN regulations.
“The proliferation of digital technologies—not just in financial services but across categories like ecommerce and digital currencies—has created more opportunities for bad actors to launder money and more risk for businesses to lose it,” said Allison Maddock, chief product officer of CSI. “Rules and regulations are not necessarily enough to stop fraud and money laundering. To avoid human error and employees that spend hours manually monitoring these concerns, all organizations need to consider AI-backed fraud protections and AML support.”
According to the Federal Trade Commission (FTC), there were 2.4 million fraud reports in 2022 which accounted for $8.8 billion in losses, a 44% increase from the $6.1 billion in 2021. CSI’s own 2023 Banking Priorities Executive Report identified P2P fraud as the top cybersecurity concern for banking executives this year. The company’s newest solutions identify these concerns with out-of-the-box rules and intuitive monitoring solutions to reduce false positives and minimize risk.
“We believe that cutting-edge, real-time financial monitoring technology can deliver the change needed to fight today’s sophisticated fraud and money laundering. Operating a safe financial ecosystem requires fintechs, banks and other organizations to deploy technology-backed tools and infrastructure that accurately inform and alert institutions to impending concerns,” said Tobias Schweiger, CEO and co-founder of Hawk AI. “We are excited to aid CSI’s empowerment of its customers against the constantly evolving threats of fraud and money laundering with explainable AI.”
Thousands of organizations throughout the world use CSI’s sanction screening technology as part of their Know Your Customer (KYC) programs. CSI’s WatchDOG solutions reinforce customers’ ability to protect their reputations and users, mitigate risk, maintain compliance and enhance due diligence in the fight against financial crime.
“CSI is a leader in the regulation technology space. Our customers rely on us to provide them with modern solutions that can adapt to and meet a constantly evolving financial crime and regulatory landscape,” said David Culbertson, CEO and president of CSI. “Our partnership with Hawk AI and the deployment of automated fraud and AML products is the latest example of CSI’s commitment to accelerating time to market and placing our customers at the forefront of innovation in financial and regulatory technology.”
Both WatchDOG products help customers remain fully compliant with government rules and regulations, including the USA PATRIOT Act of 2001, the AML Act of 2020 and the Bank Secrecy Act (BSA).