Using Artificial Intelligence in Financial Fraud Detection in Digital Banking

This research proposal explores the use of artificial intelligence in detecting financial fraud in digital banking. It examines the rise in financial fraud in digital banking and the need for advanced technology to detect it. The proposal presents the aim and objectives of research, methodology, expected outcomes, and ethical considerations.

Research Proposal
Using artificial intelligence in financial fraud detection in Digital banking

Contents
Introduction......................................................................................................................................2
Research Motivation....................................................................................................................3
Research problems.......................................................................................................................3
Aim and objectives/ research questions.......................................................................................3
Research question........................................................................................................................4
Literature Review............................................................................................................................4
Methodology....................................................................................................................................5
Research design...........................................................................................................................6
Data Collection Method...............................................................................................................6
Data analysis................................................................................................................................6
Research Strategy........................................................................................................................7
Ethical consideration...................................................................................................................7
Expected outcome............................................................................................................................7
Conclusion.......................................................................................................................................8
Bibliography....................................................................................................................................9

Introduction
The purpose due to which the research is conducted by research is to understand the increase in
the use of artificial intelligence in detecting the fraud majorly in digital banking. The research
issue that is majorly examined is the rise in financial fraud in digital banking that makes the
company detect the same with the help of advanced technology. This research proposal presents
the aim and objectives of research, which is considered, by the research in the final research for
the accurate responses. The methodology of the research is explained which shows the way from
where the researcher will gather the data and method which will be used by the researcher.

Research Motivation
Earlier, this has been found that customers are equipped with every limited sort of the channels
that are available with the motive to interact and transact with their banks. This is the reason due
to which frauds in the banking industry were limited to defaults as well as robbery. The rise in
digital banking use has offered a convincing way through which they can perform the business
transaction easily but it has increased the number of fraud in the industry. The rise in the fraud
makes the banking to use the AI in financial fraud detection in Digital Banking. The research is
essential to be conducted, as this will help the banks to save the interest of their customers and
stakeholders.
Research problems
The purpose of the assignment is to determine the use of technology like artificial intelligence in
detecting financial fraud in digital banking. The advent of technology has opened the way for the
fraudsters to execute their plans that make the researcher throw the light on the topic. It can be
argued that the experienced bankers are armed with the intelligence with the motive to detect and
counter fraudulent transaction that is possible with the machines. The researcher shows that
implementing AI to fight off identity theft that includes integrating the biometric identification
system like facial as well as voice recognition. Thus, the researcher focuses on a problem due to
which this topic has been selected by the researcher.
Aim and objectives/ research questions
The aim of the research is to analyse the use of artificial intelligence in detecting financial fraud
in digital banking. The researcher proposed the objectives with the motive to complete the aim
and some of the objectives are presented below -

 Explore the meaning and concept of artificial intelligence, financial fraud detection and
Digital banking
 Discover the role of AI in financial fraud detection in Digital banking
 Recommend strategies related to AI for eliminating financial fraud in Digital Banking.
Research question
Q1. What is the meaning of artificial intelligence, financial fraud detection, and Digital banking?
Q2. What is the role of AI in financial fraud detection in Digital banking?
Q3. What are the strategies related to AI for eliminating financial fraud in Digital banking?
Literature Review
Artificial intelligence is the simulation of the human intelligence that is processed with the
machinery that majorly includes the computer systems.1 However, disagreeing to this, researcher
said that AI is the branch of computer science that majorly focuses on the development of the
intelligence machinery and many others.2 In the views of researcher in the present world, the rise
in the availability of a large number of customer financial data makes the hackers get the details
of a credit card with the help of updated technology.3 Further, this shows that there is a
tremendous rise in the use of digital banking by the customer as this is the easiest way.
1 Mohit Joshi (2018). “Using Ai In Financial Fraud Detection Can Help Banks Save Unnecessary Losses.” [Online].
https://www.firstpost.com/tech/news-analysis/using-ai-in-financial-fraud-detection-can-help-banks-save-
unnecessary-losses-4648611.html [2019 March]
2 Wei Wei, et al. "Effective detection of sophisticated online banking fraud on extremely imbalanced data." World
Wide Web, Vol. 16, No. 4 (2013): 465.
3 Masoumeh Zareapoor, K. R. Seeja, and M. Afshar Alam. "Analysis on credit card fraud detection techniques:
based on certain design criteria." International Journal of Computer Applications Vol. 52, No. 3 (2012).

The ability to sifting through the massive amount of information and determined patterns that
might elude the human observes is considered as one of the biggest strengths of the company.
4This has been found that AI solutions are majorly deployed by the different financial service
providers with the motive to identify the fraud that is present in real time. In addition to this, the
additional benefit related to the enhanced fraud protection technology is the sincere activity that
is flagged like the fraudulent less often. Moreover, contradicting this has been found the
integration of AI in Mobile Apps for Banks contribute effectively in reducing the fraud and
detecting the same while the digital banking.5 Thus, this throws the light that the use of artificial
technology is increasing in detecting the fraud in digital banking.
The automation of processes in banking is a strategy that might be applied by banking
companies.6 The AI system helps the company not just in the manner to prevent the frauds but
also to increase the role of the overall work efficiency with the help of the automation of the
normal task. Agreeing to this, creating the anti-fraud system helps the company to understand the
different method that helps in detecting the fraud with the support of AI technology.
Methodology
The aim of the research methodology is to collect the information with the motive to accomplish
the objectives of the research. It majorly includes the different types of methods that will be used
by the researcher while conducting the final research.
4 Thomas Smale (2018). “5 Ways Artificial Intelligence Is Already Transforming the Banking Industry.” [Online].
https://www.entrepreneur.com/article/319921
5 Mohiuddin Ahmed, Abdun Naser Mahmood, and Md Rafiqul Islam. "A survey of anomaly detection techniques in
financial domain." Future Generation Computer Systems, Vol. 55 (2016), 285.
6 Armando Vieira and Attul Sehgal. "How banks can better serve their customers through artificial
techniques." Digital Marketplaces Unleashed. Springer, Berlin, Heidelberg, 2018. 325.

Research design
The research design is the component of research methodology that is important to be attended
with the motive to get the reliable as well as valid information. The researcher will make use of
the Qualitative research method instead of the quantitative and mixed research method.7 The
qualitative research design will help the researcher to evaluate the use of AI in financial fraud
detection in Digital Banking.
Data Collection Method
The data collection method is one of the feasible tools that are majorly used by the researcher
with the motive to accumulate and reliable data on the concerned research. The methods of data
collection are primary as well as a secondary tool. The researcher will make use of the secondary
data for gathering details in which the information will be gathering with the help of textbooks,
academic journals, government websites and many others.
Data analysis
Data analysis is considered a component methodology that is important to get the appropriate as
well as valid outcomes. Once the information is gathered, the researcher will identify the facts as
well as the figures with the help of the content analysis. 8The content analysis method will be
used by the researcher for analysing the content. In this research, the researcher will make use of
summative content analysis with the motive to obtain the authentic details.
7 Mackey, A. and Susan M. Gass. Second language research: Methodology and design. (Routledge, 2015), 95.
8 Melissa P Johnston. "Secondary data analysis: A method of which the time has come." Qualitative and quantitative
methods in libraries Vol. 3, No. 3 (2017), 622.

Research Strategy
Research strategy will be determined by the researcher while conducting the research with the
motive to achieve the aims and objectives. The researcher will conduct the literature review that
includes the opinions of the various researchers.9 The information will be collected by the
researcher through books, journal articles and other online sources. The research strategy will
effectively contribute in enhancing the validity as well as the reliability of the information that is
gathered by the researcher.
Ethical consideration
The final research, the researcher perform the ethical consideration which is linked with the
techniques as well as strategies that is used by the researcher to eliminate the chances of the
ethical problem. The researchers will gather information from different sources and then do
references as well as in-text citations. Moreover, the plagiarism issue is avoided by the
researcher by taking the information from authentic sources.
Expected outcome
The expected outcome of the research will include a deep understanding of the concepts that
include artificial intelligence, financial fraud detection, as well as digital banking. In addition,
the results of the research will depict the role of Artificial intelligence in the digital banking
industry with the motive to identify financial fraud. There are different types of strategies related
to the AI that can be implemented with the motive of eliminating the financial fraud in Digital
banking which is determined as an outcome.
9 Mike Saks and Judith Allsop, eds. Researching health: Qualitative, quantitative and mixed methods. (Sage, 2012),
105.

Conclusion
In the end, the research proposal includes the facts and information that will be analysed in the
context of the use of artificial intelligence in financial fraud detection in Digital Banking. The
aim and objectives of the research topic are prepared to conduct the research in an effective
manner. The method which will be used the researcher to complete the aims and objectives are
explained in the report.

Bibliography
Ahmed, M., Abdun Naser Mahmood, and Md Rafiqul Islam. "A survey of anomaly detection
techniques in financial domain." Future Generation Computer Systems, Vol. 55 (2016), 278-288.
Alison Mackey, and Susan M. Gass. "Second language research: Methodology and design.
(Routledge, 2015), 95.
Johnston, Melissa P. "Secondary data analysis: A method of which the time has
come." Qualitative and quantitative methods in libraries Vol. 3, No. 3 (2017), 622.
Joshi, M. (2018). “Using Ai In Financial Fraud Detection Can Help Banks Save Unnecessary
Losses.” [Online]. https://www.firstpost.com/tech/news-analysis/using-ai-in-financial-fraud-
detection-can-help-banks-save-unnecessary-losses-4648611.html [2019 March]
Saks, M. and Judith Allsop, eds. Researching health: Qualitative, quantitative and mixed
methods. (Sage, 2012), 105.
Smale, T. (2018). “5 Ways Artificial Intelligence Is Already Transforming the Banking Industry.”
[Online]. https://www.entrepreneur.com/article/319921
Vieira, A. and Attul Sehgal. "How banks can better serve their customers through artificial
techniques." Digital Marketplaces Unleashed. Springer, Berlin, Heidelberg, 2018. 311-326.
Wei, W. et al. "Effective detection of sophisticated online banking fraud on extremely
imbalanced data." World Wide Web, Vol. 16, No. 4 (2013): 449-475.

Zareapoor, M. K. R. Seeja, and M. Afshar Alam. "Analysis on credit card fraud detection
techniques: based on certain design criteria." International Journal of Computer
Applications Vol. 52, No. 3 (2012).