Machine Learning for Automated Financial Fraud Detection in Banking Systems

July 2025
Vol-11, Issue-4
Paper ID: 27161
ISSN: 2395-4396
Downloads: 0

Abstract & Details

Research Area
Computer Engineering
Keywords
Financial Fraud Machine Learning Anomaly Detection Banking Security Supervised Learning Real-Time Analysis
Abstract
Machine Learning (ML) has been a key technology in addressing financial fraud, particularly in the rapidly changing and high-risk bank environment. This study examines how ML models are transforming fraud detection by facilitating real-time data-driven decision-making. The article describes the different machine learning models applicable for fraud detection—supervised, unsupervised, and reinforcement learning and their pros and cons. Critical use cases like anomaly detection, transaction pattern analysis, and behavioral profiling are examined. The paper also discusses banks challenges, including data imbalance, false positives, and adaptive fraud tactics. Finally, with a look to the future, this paper underscores the need for ethical AI, ongoing model training, and interinstitutional cooperation to improve banking security frameworks.

Author Information

# Name Institute / Affiliation
1 Kolla Lokesh CMR University

How to Cite

Use the following formats to cite this article in your research.

APA Style
Lokesh, Kolla (2025). Machine Learning for Automated Financial Fraud Detection in Banking Systems. International Journal of Advance Research and Innovative Ideas In Education, 11(4), 1084-1088.
MLA Style
Lokesh, Kolla. "Machine Learning for Automated Financial Fraud Detection in Banking Systems." International Journal of Advance Research and Innovative Ideas In Education, vol. 11, no. 4, 2025, pp. 1084-1088.
IEEE Style
Kolla Lokesh, "Machine Learning for Automated Financial Fraud Detection in Banking Systems," International Journal of Advance Research and Innovative Ideas In Education, vol. 11, no. 4, pp. 1084-1088, 2025.
Vancouver Style
Lokesh Kolla. Machine Learning for Automated Financial Fraud Detection in Banking Systems. International Journal of Advance Research and Innovative Ideas In Education. 2025;11(4):1084-1088.
Harvard Style
Lokesh, Kolla (2025) 'Machine Learning for Automated Financial Fraud Detection in Banking Systems', International Journal of Advance Research and Innovative Ideas In Education, 11(4), pp. 1084-1088.
Chicago Style
Lokesh, Kolla. "Machine Learning for Automated Financial Fraud Detection in Banking Systems." International Journal of Advance Research and Innovative Ideas In Education 11, no. 4 (2025): 1084-1088.
Turabian Style
Lokesh, Kolla. "Machine Learning for Automated Financial Fraud Detection in Banking Systems." International Journal of Advance Research and Innovative Ideas In Education 11, no. 4 (2025): 1084-1088.

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