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Japan's 1st AI-powered ATM developed to combat money transfer fraud

News Desk

Kyodo News

Nagoya | Mon, November 5, 2018 | 08:07 pm
Japan's 1st AI-powered ATM developed to combat money transfer fraud

A Japanese company has developed an artificial intelligence-powered automated teller machine to prevent fraudulent money transfers, the first of its kind in the country. (Shutterstock/maxuser)

A Japanese company has developed an artificial intelligence-powered automated teller machine to prevent fraudulent money transfers, the first of its kind in the country.

The system, which can recognize the appearance and movement of ATM users through an embedded camera, aims to help prevent crimes in which scammers guide elderly victims over the phone to transfer money by making them believe they will be refunded a higher amount.

Despite repeated warnings by authorities and other entities, financial losses related to so-called refund money wiring fraud still remains high in Japan, totaling about 1.07 billion yen ($9.5 million) in the first half of 2018, according to the National Police Agency.

If the AI recognizes a user talking over the phone during a money transfer, the screen displays a warning to stop the transaction. The ATM will also ask users to take off any masks or sunglasses, and if they do not follow the instructions, the transaction will be canceled automatically.

Read also: AI to seep further into everyday life at Berlin's IFA

The AI system was designed to memorize a huge number of images based on the "deep learning" method, and boasts a highly precise detection technique, according to Hitachi-Omron Terminal Solutions Corp., which aims to commercialize the system in the next fiscal year starting in April.

In October, the Aichi prefectural police unveiled the ATM to the public and held a drill for local residents to prevent frauds and test new features of the machine.

"The new ATM feature is groundbreaking as the machine itself can help prevent crime. We expect it to be highly effective," a senior official of the prefectural police said.

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