Fraud Detection in the Era of AI

Abstract

Fraudulent activities have increased along with the new prospects of the digital economy's quick growth for both consumers and enterprises. Conventional techniques of fraud detection are insufficient to keep up with these ever-evolving fraudulent strategies. In this sense, machine learning (ML) and artificial intelligence (AI) have become potent instruments to prevent and detect fraud and guarantee the safety of online transactions. This study examines the function of AI and ML and shows how these technologies can spot irregularities and intricate patterns that would be challenging to find with conventional methods. The study includes various methods of AI-based fraud detection and analyses important ethical issues related to these practices. Furthermore, the study looks at developing technology and trends that will probably influence fraud detection in the future. In conclusion, the revolutionary potential of AI and ML in building a safer digital economy is analysed.