Fraud is an issue in any business. In real estate, even consumer housing, the purchase numbers are large, and the potential impact makes risk management important.

Resistant.AI, a firm that applies machine learning to the detection and prevention of financial crime, recently announced that U.K. online mortgage site client Habito had claimed a "30% improvement in fraud detection."

The use of computer systems to fight fraud in online commerce is mature. Originally, the work was done using statistical modeling and analysis systems. The software would review previous cases and then look for statistical relationships among many data variables. The intent was to find combinations that would suggest a greater likelihood of fraud. Then a seller—usually very large ones with sophisticated operations—would kick an order or application over to an internal anti-fraud unit, which could review the case and decide what action, if any, was needed.