LEVERAGING AI TO DETECT AND MITIGATE FRAUD IN THE BANKING AND FINANCIAL SECTOR
Sonali Agarwal
Considering the exponential rise in transaction volumes and complexity brought about by the banking and financial services industry's fast digitalisation, it is essential for institutions to use cutting-edge fraud detection and prevention strategies. In this sense, artificial intelligence (AI) has become a game-changing technology, providing improved capabilities for quickly and accurately recognising fraudulent activity. AI algorithms, particularly those involving machine learning, can analyze massive datasets at high speeds to identify suspicious activities that may indicate fraud. These systems can recognize patterns and anomalies that are hard for humans or traditional rule-based systems to detect. AI systems provide real-time transaction monitoring, which means potential fraudulent actions can be flagged or blocked before they are completed. This study looks at several AI strategies, their efficacy, and the difficulties in putting them into practice. It also investigates the use of AI in financial services fraud detection and prevention. In order to assess the effect of AI on fraud detection rates and financial losses resulting from fraud, the study also provides an examination of data-driven methodologies.
Considering the exponential rise in transaction volumes and complexity brought about by the banking and financial services industry's fast digitalisation, it is essential for institutions to use cu...