ItemBook Chapter

ML Use in Fraud Detection in the Financial Sector

Title
ML Use in Fraud Detection in the Financial Sector
Creator
Yadav, Sameer; Singh, Archana; Peddapalli, Nagaraj; Chauhan, Amit; Ahmed, Syed Arfath; Bhoopathy, V.
Description
Detecting fraud is complex, requiring analysis of vast data over time, making it resource- intensive for human investigators. This chapter explores key forms of financial fraud, including those involving corporations, banks, and insurance sectors. It provides a thorough evaluation of various machine learning techniques, such as supervised and unsupervised learning, deep learning, and ensemble methods, used to detect and prevent these financial crimes. The chapter examines the effectiveness of algorithms like LR, DT, SVM, and NN in identifying complex fraud patterns. Additionally, it discusses advanced approaches like anomaly detection, clustering, and real- time fraud detection systems. It highlights ongoing challenges and proposes potential future developments, including explainable AI, federated learning, and improved data processing techniques. This comprehensive exploration aims to deepen the understanding of machine learning's role in fraud detection and guide future research toward more effective and reliable fraud prevention strategies. 2025 by IGI Global Scientific Publishing. All rights reserved.
Source
Utilizing AI and Machine Learning in Financial Analysis;pp.427-447
Date
01-01-2025
Publisher
IGI Global
Coverage
Yadav S., University of Allahabad, India; Singh A., University of Allahabad, India; Peddapalli N., GITAM School of Business, GITAM University, India; Chauhan A., Christ University, India; Ahmed S.A., Maulana Azad National Urdu University, India; Bhoopathy V., Sree Rama Engineering College, India
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISBN: 979-836938509-8; 979-836938510-4;
Format
online
Language
English
Type
Book chapter

Citation

Yadav, Sameer; Singh, Archana; Peddapalli, Nagaraj; Chauhan, Amit; Ahmed, Syed Arfath; Bhoopathy, V., “ML Use in Fraud Detection in the Financial Sector,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 19, 2026, https://archives.christuniversity.in/items/show/25056.

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