Deon Crasto: pioneering ethical AI for global payments

Photo courtesy of Deon Crasto

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In today’s rapidly evolving technological landscape, many are rushing to monetize artificial intelligence (AI) and machine learning (ML) across industries, often prioritizing quick financial gain over lasting impact. However, amidst this race, technologists like Deon Crasto are using these tools to solve real-world problems with an ethical, human-centered approach.

Crasto’s journey into the world of AI began in Bombay, India, where his curiosity for technology was sparked when he first encountered a computer at the age of fifteen. That early interest led him to pursue a career that blends innovation with purpose. After building his foundation in fintech, focusing on risk management and compliance, Crasto pursued a Master’s in Data Science and Analytics at the University of Maryland, setting the stage for his work to apply AI to a host of domains. 

Revolutionizing global payments with AI

Crasto has made transformative contributions to the world of payments, particularly in developing AI solutions that detect and mitigate fraud. In his roles at Checkr, Ondeck, and Velocity Global, he spearheaded the creation of AI-driven models that analyze risk in real-time, ensuring business security while managing compliance. His work stands out for its technical excellence and ability to combine machine intelligence with human judgment, creating a more comprehensive and adaptable system. 

A key innovation Crasto developed is a scoring algorithm that assesses the risk of merchant transactions based on multiple factors. He calls it the Adaptive Risk Engine, a system designed to continuously learn and adapt to new data patterns, ensuring that each transaction is evaluated with precision, balancing the need for security with a seamless user experience. Drawing inspiration from his experience at Ondeck Capital—where real-time creditworthiness assessments were the norm—Crasto realized the same approach could be applied to digital payments. “I started thinking, why not apply similar principles to digital payments?” Crasto recalls. “The challenge, however, was balancing cross-border payment compliance, ensuring a smooth user experience, and identifying fraudulent actors at the same time.”

His solution was a scoring model that categorizes transactions into different risk levels. Low-risk transactions are processed smoothly without additional oversight, while moderate-risk ones are subject to precautionary safeguards. High-risk transactions are flagged for human intervention, where an expert reviews the situation before making the final call. This system integrates the strengths of AI’s speed and precision with the nuanced decision-making that only human expertise can provide.

Ethical AI: Balancing security, transparency, and fairness

Crasto’s commitment to ethical AI is a cornerstone of his work. While many AI systems prioritize speed and efficiency, Crasto ensures that transparency and fairness remain at the heart of his models. Fraud detection systems often suffer from false positives—flagging legitimate transactions as fraudulent—which can damage customer trust and disrupt business operations. To address this, Crasto’s scoring algorithm continuously refines its accuracy, ensuring that low-risk transactions proceed without friction, while high-risk cases are escalated to human review when necessary.

“Finding the right balance between trust and caution was key,” Crasto explains. “Our system allowed us to leverage AI for its efficiency while preserving the human touch where it matters most.” His focus on minimizing customer friction while maintaining stringent security measures sets a new standard for ethical AI in global payments.

AI and human synergy: Enhancing productivity and security

Crasto’s approach to fraud detection illustrates how AI and human intelligence can complement one another. “AI can achieve incredible things with speed and precision, but there are still areas where human judgment is indispensable,” Crasto notes. His hybrid model, where machines handle large-scale data analysis and humans step in for more complex decisions, boosts productivity without compromising security.

In practice, this system ensures that AI does the heavy lifting, processing vast amounts of transactional data at scale, while human experts make the final call in high-risk scenarios. This synergy has proven to be a highly effective approach, reducing false positives, streamlining global transactions, and increasing overall efficiency.

Looking ahead: A vision for tomorrow

Crasto’s work extends beyond today’s challenges. His vision for Artificial Intelligence is expansive, seeing it as a tool that can foster collaboration across industries, reduce inefficiencies, and enhance human well-being. In a world where many are racing to profit from AI innovations, Crasto’s dedication to using AI responsibly and ethically stands as a model for the next generation of innovators. His work enhances productivity while ensuring that models are deployed thoughtfully, benefiting businesses and humanity alike.