Amex Uses Synthetic Data for Rare Fraud Patterns

Something we modeled even before machine learning to test 'nearness' to rare,  or even nonexistent patterns. 

Companies Beef Up AI Models with Synthetic Data  By The Wall Street Journal, July 28, 2021

Companies are building synthetic datasets when real-world data is unavailable to train artificial intelligence (AI) models to identify anomalies.

Dmitry Efimov at American Express (Amex) said researchers have spent several years researching synthetic data in order to enhance the credit-card company's AI-based fraud-detection models.  Amex is experimenting with generative adversarial networks to produce synthetic data on rare fraud patterns, which then can be applied to augment an existing dataset of fraud behaviors to improve general AI-based fraud-detection models.

Efimov said one AI model is used to generate new data, while a second model attempts to determine the data's authenticity. Efimov said early tests have demonstrated that the synthetic data improves the AI-based model's ability to identify specific types of fraud.

From The Wall Street Journal 

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