REAL-TIME FRAUD DETECTION IN BANKING WITH GENERATIVE ARTIFICIAL INTELLIGENCE

Abstract

The increase in digital transactions, cases of banking fraud have also increased. In this scenario, real-time fraud detection methods are essential for financial institutions. Outdated techniques can struggle to keep pace with these continually evolving fraud tactics. One potential solution to this challenge is generative artificial intelligence. Generative AI is a state-of-the-art algorithm-based technology powered by machine learning that imitates human behavior and generates real-world data. You can use this ability to detect banking fraud in real-time. Generative AI can flag suspected activities in real-time, all through its ongoing training on patterns and anomalies within customer transactions. Generative AI can be effective for fraud prevention as it helps identify fraud that occurs not only from ATMs but also from online banking, and multiple channels are available to the target audience. It has opened a wide range of opportunities for banks since real-time detection and prevention of fraudulent activities can be done, resulting in loss prevention and customer asset safety. Generative AI can also be trained for new types of fraud, making it a leading defense against new fraudulent tactics. It allows banks to take proactive measures to prevent fraud instead of reactively fighting it, saving money and time and improving consumer trust. We can protect customers and the financial institution in real-time.