The Growing Importance of AI in Fraud Detection
Abstract
Fraud is a persistent and evolving challenge in the financial technology (fintech) industry, costing businesses and consumers billions annually. As digital transactions become the norm and financial services increasingly migrate online, fraudsters have become more sophisticated, exploiting vulnerabilities in systems and processes to execute fraudulent activities. Traditional fraud detection methods, reliant on static rules and manual oversight, often struggle to keep pace with the speed and complexity of these threats. This has created an urgent need for innovative solutions capable of addressing fraud in real time.
Downloads
References
Al-Naseri, N. (2021). AI in Financial Services: Enhancing Transparency and Mitigating Bias. Australian Journal of Machine Learning Research & Applications.
Al-Naseri, N. (2021). Blockchain Technology and Distributed Systems. Published by FinTech Research Network.
European Union. (2021). Artificial Intelligence Act: Proposal for a Regulation Laying Down Harmonized Rules on Artificial Intelligence. European Commission.
Financial Conduct Authority. (2022). Guidance on the Use of Artificial Intelligence in Financial Services. Financial Conduct Authority.
General Data Protection Regulation (GDPR). (2018). Regulation (EU) 2016/679 of the European Parliament and of the Council.
Consumer Financial Protection Bureau (CFPB). (2022). Artificial Intelligence in Financial Services: Implications for Fairness and Compliance.
Singapore Model AI Governance Framework. (2020). Second Edition. Published by the Personal Data Protection Commission Singapore.
Australia’s Department of Industry, Science, Energy and Resources. (2020). Australia’s Artificial Intelligence Ethics Framework.
Explainable AI (XAI) Technologies. (2023). Understanding Transparency in AI Systems. Journal of AI Governance and Compliance.
Federated Learning Consortium. (2022). Privacy-Preserving AI Techniques for Cross-Industry Collaboration. International Conference on AI in Finance Proceedings.
Real-Time Monitoring Systems in AI. (2023). Best Practices for Dynamic Fraud Detection. Journal of Financial Technology and Security.
Blockchain and Fraud Detection: Trends and Applications. (2023). White Paper on Decentralized Technologies in Financial Services. Blockchain Alliance Research.
