Detecting Financial Fraud in the Digital Age: The AI and ML Revolution

Abstract

Con artists are sharpening their skills in tandem with technological advancements. The financial services sector is very worried
about fraud. Customers’ minimal interaction with their financial institutions meant that fraud in this area was formerly confined
to robberies and loan defaults. Due to the proliferation of new channels for communicating and doing business with banks and
other financial institutions, several forms of financial fraud have recently emerged. The financial industry is only one of several
that is benefiting from technology’s influence. When it comes to fighting financial crimes and fraud, technology is changing the
game. Machine learning (ML) and artificial intelligence (AI) have gone from being trendy tech terms to becoming a reality in
the business world. This research aims to provide light on the many forms of financial fraud as well as the function of artificial
intelligence and machine learning in detecting such fraud. This research makes use of secondary data gathered from various
online sources and publications.