AI-Driven Fraud Detection Systems in Financial Services

Dharani Jaganathan, Sam Goundar, Raguvaran S., C. S. Madhumathi

Abstract


AI-driven fraud detection systems are transforming financial services by enhancing the ability to identify and mitigate fraudulent activities. This paper explores the methodologies and technologies behind these systems, focusing on their implementation in various financial sectors. Through case studies, the paper highlights the effectiveness of AI algorithms in analyzing transaction patterns, improving detection rates, and reducing false positives. Additionally, challenges such as data privacy concerns, algorithmic bias, and the need for continuous adaptation to evolving fraud tactics are discussed.

Keywords


AI, fraud detection, financial services, cybersecurity.

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