Machine Learning for Fraud Detection Literature Review 2022

Running head: MACHINE LEARNING FOR FRAUD DETECTION
MACHINE LEARNING FOR FRAUD DETECTION
Name of the Student
Name of the University
Author note

MACHINE LEARNING FOR FRAUD DETECTION
Table of Contents
Literature review: 1
How potential threats are missed by the organization: 1
Machine learning can play a crucial role in detection of frauds: 3
Research Methodology: 6
Reference: 10

MACHINE LEARNING FOR FRAUD DETECTION
Literature review:
How potential threats are missed by the organization:
The major threat to the organization that is responsible for bringing down the working
structure of the business organization due to serious attacks that has caused downfall are
labelled as potential threats for an organization. The most potential threat to an organization
happens on the most vulnerable and sophisticated area of the organization. There are severe
threats to the organization that are arising due to the spam messages that are sent to the
employee’s accounts in the email profiles. Accessing those links and providing the private
information in the links cost the organization in a vulnerable way. The attackers get access to
the private details of the organization and also are able to access the network server of the
organization and hence these are the main reason behind the different types of the malicious
attacks in the organizations and this has been clearly stated by the author Agrawal and
Agrawal (2015). The data of the attacks or the area from where the attacks are originating are
often not available to the organization and hence the organization is unable to track the areas
that are causing the harm. The detection formats that are used by the organizations are poor.
The small loopholes that are created due to the inefficient security of the IT systems of the
organizations are the main reasons that are causing the potential threat to the systems of the
organizations. The firewall systems or the anti viruses used by the organizations need to be
more efficient [15]. The up to date cyber security systems or the firewalls are required for
avoiding the problems that are causing the security malfunction in the organization systems.
Malware is software that is malicious. It is the principal cyber-assault weapon and
contains viruses, worms, Trojans, ransomware, administrative devices, spyware bots, bugs
and kits. When a user clicks a connection or acts, it is installed. Malware can prevent access
to data and programs within, obtain information and infiltrate systems.

MACHINE LEARNING FOR FRAUD DETECTION
As per the statement of the author, Mena (2016), The significance of addressing
Internet safety has been understood by most companies. With almost 2/3 of a group of little
organisations lately surveyed that have suffered cyber attacks in the past two years, there is
increasing talk about the hazards of a lack of cyber security. The following dangers include:
Private data compromise: These days companies depend strongly on the information
they collect, whether it be market information, multiple account details or customer private
data. If a cyber hack happens, this information not only can be robbed by another
organization, but also the data can be changed so that operational reliability can be drastically
damaged by the company.
Costly costs for recovery. Not only does a violation of safety jeopardize data, it can
have catastrophic consequences. Most of these are "concealed" expenses, which could affect
your company for up to two years following the incident [16]. The loss of both moment and
money, regardless of whether it is fresh IT-training, the acquisition of fresh software, or the
extensive process of restoration of lost information.
The organization systems have become vulnerable to the cyber attacks. The security
systems of the organizations are not efficient enough to track the vulnerabilities that are done
by the personal system of the employees of the organization. The monitoring systems that are
needed to be implemented around the network system of the organization are lot present in
the organization. This result in being prey to the attacks that are done by the hackers or all
kind of fraud related attackers and brings done the organization business infrastructure
causing immense loss to the system.
Machine learning can play a crucial role in detection of frauds:
According to the author Ayoubi et al. (2018), the machine learning is referred to the
application of the IT advancement which is known as the Artificial Intelligence. The