ML in Financial Fraud

This Article explores the role of machine learning in fraud detection within the financial sector. We examine how ML algorithms can detect anomalies, classify transactions, and predict fraudulent behavior. We delve into the various types of ML algorithms used for fraud detection, highlighting their strengths and limitations. Additionally, the article addresses the challenges associated with implementing MLbased fraud detection systems, including data quality, model interpretability, and the evolving nature of fraud tactics. We conclude by discussing the future prospects of machine learning in financial fraud detection and the ongoing efforts to address its limitations, Financial fraud poses a significant threat to the financial services industry, leading to substantial financial losses and reputational damage. Machine learning (ML) algorithms have emerged as powerful tools for combating fraud, offering the ability to analyze vast amounts of data and identify complex patterns indicative of fraudulent activity.