Unraveling Financial Fraud With AI and Machine Learning: Screening Into Ad Clicks, Credit Card Management, and E-Commerce Transactions

Abstract

As the financial sector navigates its trajectory into a digitized future, it stands at a crucial juncture marked by unparalleled opportunities and risks. The emergence of artificial intelligence (AI) and machine learning (ML) signifies a paradigmatic shift, providing a powerful arsenal to strengthen defenses against financial frauds that have grown increasingly insidious and elusive. Credit card fraud, a widespread type of financial deception, encompasses the unauthorized utilization of credit card information for making purchases or withdrawing cash. Vigilance and proactive security measures are essential in combating the ongoing threat of credit card fraud. This chapter assumes a pivotal role as a critical undertaking to unravel the dynamics of these frauds, identify the vulnerabilities that facilitate their proliferation and elucidate the intricate framework of AI and ML solutions poised to disrupt and dismantle these nefarious activities.