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

Rajaesh Kamisetty

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.

View / Download PDF File

E-ISSN 2582-2160

doi

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads

Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 6 Isu 6 Cover Page Vol 6 Isu 5 Cover Page Vol 6 Isu 4

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9898-5948-55	editor@ijfmr.com

International Journal For Multidisciplinary Research

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

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

Share this