• B. Hemalatha

The financial services sector is increasingly reliant on digital platforms, leading to increased risks of financial fraud and cybercrime. Traditional methods like rule-based fraud detection systems have proven inadequate in addressing these challenges, as they can only detect known fraud patterns. As fraudsters continuously innovate and deploy more complex methods, static systems struggle to keep pace, leading to missed fraud detection and high false positives. Artificial Intelligence (AI) has emerged as a transformative tool in financial security, leveraging machine learning, deep learning, and natural language processing to analyze massive datasets in real time. AI can detect subtle patterns, anomalies, and correlations that would be invisible to human analysts or rule-based systems. AI-powered threat intelligence systems can identify malware variants, predict cyber attack strategies, and prevent breaches before they occur. As the global financial ecosystem grows more interconnected and complex, the reliance on AI will become even more critical. Financial institutions are investing heavily in AI-driven fraud detection platforms to protect their customers and assets, and regulators are beginning to recognize the importance of AI in maintaining financial stability and consumer confidence. This paper highlights the transformative potential of AI in strengthening financial security while addressing challenges of ethical use, data privacy, algorithmic bias, and regulatory compliance. By presenting both the benefits and limitations, the study seeks to provide insights into how AI can be responsibly harnessed to create a secure and resilient financial ecosystem. This paper contributes to the ongoing dialogue on balancing technological innovation with ethical and regulatory safeguards, ensuring that AI becomes not only a tool of efficiency but also a foundation for digital trust and long-term resilience in the global financial system.

Financial fraud, AI, detection, transformative tools and platforms.

"THE ROLE OF ARTIFICIAL INTELLIGENCE IN COMBATING FINANCIAL FRAUD AND ENHANCING CYBER SECURITY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 11, page no.58-66, November-2025, Available :http://www.jetir.org/papers/JETIRHD06009.pdf

"THE ROLE OF ARTIFICIAL INTELLIGENCE IN COMBATING FINANCIAL FRAUD AND ENHANCING CYBER SECURITY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 11, page no. pp58-66, November-2025, Available at : http://www.jetir.org/papers/JETIRHD06009.pdf