International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 6 Issue 6 November-December 2024 Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

Artificial Intelligence in Banking Fraud Detection: Enhancing Security Through Intelligent Systems

Author(s) Rajaesh Kamisetty
Country United States
Abstract The integration of Artificial Intelligence (AI) in banking fraud detection represents a significant
advancement in financial security systems, fundamentally transforming how financial institutions
approach fraud prevention and detection. This article examines the implementation and effectiveness of
AI-powered systems in detecting and preventing fraudulent activities within the banking sector. Through
comprehensive article analysis of machine learning algorithms, pattern recognition systems, and real-time
data analytics, this article demonstrates how AI-based solutions significantly outperform traditional fraud
detection methods in both accuracy and efficiency. The article findings indicate that AI systems achieve a
marked improvement in fraud detection rates while substantially reducing false positives, enabling faster
response times to potential threats, and automating previously manual investigation processes.
The article reveals that AI-powered systems excel in analyzing vast quantities of transactional data in
real-time, identifying subtle patterns and anomalies that may indicate fraudulent activities such as identity
theft, account takeovers, and unauthorized transactions. Furthermore, the implementation of predictive
analytics and adaptive algorithms shows continuous improvement in threat detection capabilities as these
systems learn from new fraud patterns. The article also addresses critical challenges in AI
implementation, including technical infrastructure requirements, data quality concerns, and privacy
considerations, while providing strategic recommendations for financial institutions planning to adopt or
enhance their AI-based fraud detection systems. These findings have significant implications for the
banking industry's future security landscape, suggesting a paradigm shift in how financial institutions
approach fraud prevention and risk management.
Keywords Artificial Intelligence, Fraud Detection, Banking Security, Machine Learning, Risk Management
Field Computer
Published In Volume 6, Issue 6, November-December 2024
Published On 2024-11-21
Cite This Artificial Intelligence in Banking Fraud Detection: Enhancing Security Through Intelligent Systems - Rajaesh Kamisetty - IJFMR Volume 6, Issue 6, November-December 2024. DOI 10.36948/ijfmr.2024.v06i06.31034
DOI https://doi.org/10.36948/ijfmr.2024.v06i06.31034
Short DOI https://doi.org/

Share this