Nasdaq Pioneers Next-Gen AI Technology to Fight Back Against Cyber Fraud, Says CEO Friedman
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In an era where cybercrime and financial fraud are becoming increasingly sophisticated, Nasdaq Inc. is taking a proactive stance. CEO Adena Friedman announced significant investments in next-generation AI technology to combat these growing threats.
This move underscores Nasdaq’s commitment to enhancing its anti-crime capabilities, particularly against the backdrop of a financial industry grappling with digital-age challenges.
Nasdaq Pulls Out AI Big Guns
Friedman, at the Consumer Technology Association conference in Las Vegas, emphasized,
“We are investing in the technology in a very significant way.”
This initiative is more than just an expansion; it’s a strategic evolution for Nasdaq. Since becoming CEO in 2017, Friedman has led Nasdaq beyond its exchange role, focusing on stable revenues and tech innovation.
The technology in question leverages artificial intelligence to predict and accelerate the identification of criminal activities, thereby aiding in the swift elimination of threats. Nasdaq’s collaboration with banks and other firms is key, helping them strengthen defenses against financial crimes using advanced software.
Meanwhile, FBI assistant special agent in charge of the San Antonio division, Christopher Delzotto, highlighted the rising tide of cybercrime, a testament to the need for such technological advancements. Delzotto pointed out the transnational nature of these threats:
“Most of the actors are in countries where we can’t do proactive investigations.”
The FBI’s increasing workload in tackling cyberattacks in various sectors accentuates the urgency for innovative solutions like using AI technology.
Law Enforcement Agencies Adopting On-Chain Tools to Fight Crypto Crime
Adding another layer to this complex cryptocurrency sector. A recent survey by TRM Labs revealed that nearly 50% of law enforcement professionals believe crypto crimes can be more effectively managed with the right on-chain tools.
The survey involved 300 US and international law enforcement professionals. The results underscore the importance of on-chain analytical tools in investigating sophisticated crypto transactions.
Importance of On-Chain Analysis Tools For The Successful Investigation of Crypto Crimes. Source: TRM Labs
Leading financial institutions like Nasdaq are integrating AI and on-chain analysis tools. This, coupled with increased law enforcement training in crypto crimes, addresses the complex nature of financial cybercrime.
As these technologies increasingly integrate into the financial sector, the aim is to gain the upper hand over cybercriminals, creating a safer environment for both businesses and consumers.