AI-Based Fraud Detection in Financial Systems

Abstract

Artificial Intelligence (AI) has become a critical technology for detecting and preventing fraud in modern financial systems. Machine learning, deep learning, natural language processing, and anomaly detection techniques enable financial institutions to identify suspicious transactions, reduce financial losses, and strengthen regulatory compliance. AI-driven fraud detection systems analyze massive volumes of real-time transactional data, recognize hidden patterns, and continuously adapt to emerging fraud strategies. This paper examines AI-based fraud detection techniques, applications in financial services, implementation challenges, and future research directions.