• Teja Reddy Gatla

The main aim of this paper is to assess the advances and challenges of AI and Predictive analytics in fraud detection. The financial sector is continually facing payment fraud from numerous channels, individuals, and organized crime. The most successful method is cross-border fraud, and organized crime is planning it most [1]. Detection of frauds is extremely difficult due to the enormous volume of transactions, heavy regulatory market, and diverse channels through which financial transactions are executed. The methods of frauds keep on changing. Traditional rule-based techniques are too late to capture the rapidly changing fraud scenario. The predictive data mining techniques provide much better results to get rid of complex fraud in comparison to traditional methods. But the success of any data mining algorithm depends upon the pattern of data it is given. The artificial generation at the time of fraud is completely different from the normal behavior of the transaction, so mapping of this different fraudulent pattern is necessary for successful detection of that fraud to minimize false positives. AI provides a novel way to simulate human knowledge and makes decisions with self-confidence characterized in that knowledge to solve problems [1]. The strength of AI in fulfilling interactive and graphical interfaces for complex systems and online analytical processing gives the flexibility for the end users in the financial sector to monitor and identify complex fraud patterns. This paper highlights the various AI and predictive analytics techniques used to detect the frauds and examines to what extent these methods have helped to minimize the false positive, true positive, and rate of detection [2].

Fraud, Fraud detection, artificial intelligence, machine learning, data, identify theft, advanced technologies

"AI AND PREDICTIVE ANALYTICS IN FRAUD DETECTION: EXPLORING HOW MACHINE LEARNING ALGORITHMS CAN ENHANCE FRAUD DETECTION AND PREVENTION STRATEGIES IN THE FINANCIAL INDUSTRY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 9, page no.e334-e338, September-2021, Available :http://www.jetir.org/papers/JETIR2109551.pdf

"AI AND PREDICTIVE ANALYTICS IN FRAUD DETECTION: EXPLORING HOW MACHINE LEARNING ALGORITHMS CAN ENHANCE FRAUD DETECTION AND PREVENTION STRATEGIES IN THE FINANCIAL INDUSTRY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 9, page no. ppe334-e338, September-2021, Available at : http://www.jetir.org/papers/JETIR2109551.pdf