It all started as a normal day for traders David and John (not their real names). Out of the blue, their company’s audit and compliance team called them, seeking clarifications about some of their recent trades. Shortly afterward, David and John realized they had just become victims of the rise of the machines.

Both traders had engaged in inappropriate behaviors. David had favored a single counterparty at the expense of his employer, but this had been cloaked by a complex trading pattern. John, on the other hand, had built a position with an unauthorized risk profile and camouflaged this through after-hours orders and inappropriate communications with other traders. For months, both individuals had been able to evade detection, but the bank had just implemented a new system of behavioral analysis based on artificial intelligence. That was how they got caught.

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