Paper Details

Name: Arutgeevitha.G & T. Tamilselvan
Country: India

Year: 2026
Volume: Volume No: 13, Issue: 1, Year: 2026
Page Number: 123-133
DOI: https://doi.org/10.5281/zenodo.19508495

ABSTRACT
In today’s digital era, the banking sector faces a growing threat from financial fraud, which continues to cause significant economic losses worldwide. As banking transactions become faster and more technology-driven, fraudsters also develop more advanced methods to exploit system vulnerabilities. Traditional rule-based fraud detection systems often struggle to keep up with these evolving threats. In this changing landscape, Artificial Intelligence (AI) and Machine Learning (ML) have emerged as powerful tools that help banks detect suspicious activities with greater speed and accuracy. By analysing large volumes of transaction data and identifying unusual patterns, AI-powered systems act like a vigilant guardian, helping banks recognize and prevent fraudulent behaviour before serious damage occurs. This study explores the role of AI-driven fraud detection systems in the banking sector, with special reference to Coimbatore district. It examines how modern machine learning techniques are used to identify different forms of financial fraud such as credit card fraud, identity theft, and account takeover. The study also highlights how AI technologies improve the efficiency of fraud detection by reducing errors, increasing detection accuracy, and strengthening overall banking security. In a world where financial systems are constantly evolving, AI stands as a promising ally, helping banks protect their customers, safeguard
financial assets, and build a more secure and trustworthy banking environment.

Keywords: Artificial Intelligence, Machine Learning, Fraud Detection, Banking Security,
Financial Fraud, Credit Card Fraud, Identity Theft, Anomaly Detection, Banking
Technology, Financial Crime Prevention.