Case Study: Accelerating Fraud Research Efficiency with Human-in-the-Loop AI

Case Study
From Bottleneck to Bankable
Client: A Global Financial Services Firm
Industry: Financial Services, Fraud detection
63% |
$775,000 |
5 Days |
Increased team capacity | In savings | To complete, hindered by manual processes and back-and-forth internal communications. |
Bottlenecks, Busywork, and Bottled Potential: Inside Level 1 Fraud Headaches
Our client, a global financial services firm, faced significant operational bottlenecks in their Level 1 fraud research team. Analysts were burdened by excessive manual effort and fragmented data sources, spending up to six hours per case navigating multiple, unintegrated systems. This led to:
- Inefficiency: Repetitive, time-consuming data collection.
- High False Positives: Difficulty in accurately identifying genuine fraud due to scattered, unstructured data.
- Impeded Decision-Making: Challenges in integrating critical unstructured data into their proprietary risk model (their "secret sauce"), making it difficult for Level 2 analysts to quickly discern crucial information and make timely decisions.
- Prolonged Case Cycles: A standard fraud case took approximately 5 days to complete, hindered by manual processes and back-and-forth internal communications.

Human-in-the-Loop (HITL) Agent Orchestration
Recognizing that off-the-shelf AI solutions couldn't address their unique institutional knowledge and processes, our team partnered with the client to implement a custom Human-in-the-Loop (HITL) AI solution. Our approach focused on augmenting human capabilities rather than replacing them, preserving the client's proprietary risk model and expert judgment.
We deployed a multi-agent AI system designed to automate the initial "grunt work" of the Level 1 analysts. This intelligent system:
- Integrated disparate data sources, transforming manual data collection into an automated process.
- Pre-processed and weighted information according to the client's "secret sauce" risk model, including confidence scores for greater transparency.
- Provided Level 1 analysts with a pre-assessed report, allowing them to efficiently review, refine, and create the final risk assessment.
- Empowered Level 2 analysts with immediate, organized access to crucial information, enabling them to quickly identify key insights and accelerate critical decisions.
Turbocharged Fraud Assessments: From Six Hours to Four Minutes
The implementation of the HITL AI solution delivered immediate and significant operational efficiencies and financial returns:
- Dramatic Time Savings: The initial 6 hours of manual data research per case was reduced to approximately 4 minutes of AI processing time.
- Accelerated Case Completion: The average time to complete a standard fraud case plummeted from 5 days to just 2 days. (Note: Remaining time is attributed to necessary human interaction and communication, not technology limitations).
- Significant Cost Reduction: A 46% reduction in operational costs, primarily driven by optimized man-hours.
- Increased Capacity: A 63% increase in team capacity, freeing up valuable human resources for more complex tasks and strategic initiatives.
- Exceptional ROI: An annualized ROI of $775,000 in savings, excluding implementation costs.
Frequently Asked Questions:
The client’s Level 1 fraud research team struggled with inefficiency due to manual data collection across multiple unintegrated systems, high false positives from scattered unstructured data, difficulty integrating critical data into their proprietary risk model, and prolonged case cycles averaging 5 days per fraud case.
Off-the-shelf AI solutions lacked the ability to incorporate the client’s unique institutional knowledge and proprietary risk model. The HITL approach augmented human expertise while preserving expert judgment and the client’s “secret sauce,” ensuring tailored, transparent, and trustworthy automation.
The multi-agent AI system automates manual data collection by integrating disparate sources, pre-processes and weights information according to the proprietary risk model, generates pre-assessed reports for Level 1 analysts to review and refine, and provides Level 2 analysts with organized, actionable insights to accelerate decision-making.
The solution reduced manual data research time from 6 hours to 4 minutes per case, cut average case completion time from 5 days to 2 days, lowered operational costs by 46%, increased team capacity by 63%, and delivered an annualized ROI of $775,000 in savings.
No. The HITL AI system is designed to augment human capabilities, automating repetitive and time-consuming tasks while preserving expert judgment. Human analysts remain essential for reviewing AI outputs, refining assessments, and making final decisions.
The system incorporates confidence scores and weights information based on the client’s proprietary risk model, providing analysts with transparent, pre-assessed reports. This approach allows analysts to understand how conclusions were reached and maintain control over final risk assessments.