Fight Against Financial Crimes – Early Detection and Prevention of Financial Frauds in the Financial Sector with Application of Enhanced AI

Abstract: Financial crimes pose a significant threat to the stability and integrity of financial systems, necessitating advanced technologies to mitigate risks. It can be challenging to identify financial cybercrime-related activity because, for instance, an extremely restrictive algorithm might prevent any suspicious activity that would impede legitimate customer transactions. Financial institutions face challenges beyond just navigating and identifying legitimate illicit transactions. Customers and regulators are increasingly demanding transparency, fairness, and privacy, which places special restrictions on the use of AI techniques to identify fraud-related activity. This research paper aims to investigate the pivotal role of Artificial Intelligence (AI) in the early detection and prevention of financial frauds within the global banking sector. The study delves into the background of financial crimes, reviews relevant literature, explores AI technologies used in intelligent banking, provides recommendations for enhanced prevention strategies, and concludes with the potential impact of AI on global banking.

Keywords: Machine Learning Algorithms, Natural Learning Processing, Predictive Analysis, Blockchain Technology, Pattern Recognition, Data Analytics. Cite: Waheeduddin Khadri Syed, Kavitha Reddy Janamolla,"Fight Against Financial Crimes – Early Detection and Prevention of Financial Frauds in the Financial Sector with Application of Enhanced AI", IJARCCE International Journal of Advanced Research in Computer and Communication Engineering, vol. 13, no. 1, 2024, Crossref https://doi.org/10.17148/IJARCCE.2024.13107.