Fraud Detection with Machine Learning and Artificial Intelligence

Frauds is the crime of acquiring money by cheating others and occurs in all spheres of life. Fraud can occur in government agencies, businesses, financial sector including credit card fraud, and many other institutions. Experts use fraud detection and decision support systems to examine fraud instances, which are becoming increasingly concerning using the techniques of artificial intelligence (AI). These professionals encounter the blackbox dilemma and lack confidence in AI predictions for fraud with the introduction of AI for decision support. Frauds are known to be unique and dynamic. They are supposed to have no patterns; hence, it is difficult to identify fraud cases. Fraudsters use latest and updated technological advancements to their response of advantage and to prevent and detect the fraud technology. A number of fraud issues occur in the modern world. The primary focus of this study is machine learning algorithms and its use in the detection of online frauds. The integration of AI and machine learning systems into claims processing, customer service, and fraud detection are considered. © 2024 selection and editorial matter, Vikas Garg, Richa Goel, Pooja Tiwari, and Esra S. Döngül.