FinVision: AI-Driven Financial Fraud Detection
SHAH MEET ALPESHBHAI
2406142000691
Patil Shubham Maheshbhai
2406142000704
Guide Name: Dr. Vaishali Shah
ABSTRACT
In this digital age, financial fraud is a big issue; most people use online banking; as well as using UPI payment methods; credit cards etc. to pay for their everyday purchases or bills. So, there has been a significant increase in the number of transactions taking place online. However, with the rapid development of digital financial services, there is an increase in the number of fraudulent transactions occurring. Many people and businesses are suffering from financial loss due to fraudulent transactions done by unauthorized users, identity theft and any other type of fraudulent activity. One of the focus areas of this research will be a system known as “FinVision” designed to detect and prevent financial fraud through a simple and effective means.
Finvision detects fraudulent transactions using the transaction behavior of users. Every individual has their own way of spending money; every person has an average amount that they spend at a certain place; and at a certain time when they use a financial service (e.g: making a purchase at a store). FinVision will monitor the transaction behaviour of each user, and use that information as a baseline for future transactions made by that user through “FinVision.” If there is an unusual transaction made by the user (e.g., a new/unknown store; or a transaction that is larger than what the user normally makes; or if multiple transactions are made in a short period of time; etc.), “FinVision” will flag that transaction as being “suspicious.”
FinVision has been developed to provide immediate alerts when suspicious activity is detected. Alerts may be sent to banks, financial institutions, and directly to customers. Because of the prompt notification, you can take swift action such as blocking a transaction, verifying the user is legitimate, or putting a temporary freeze on an account. Preventing further use of an account prevents potential financial loss to the account holder. FinVision is designed to work in real time, therefore it detects fraud during the act and not after the fact.
Also, FinVision assists banks in improving their security systems by continuously analysing transaction activity data. The Finvision system is able to build on the success of previous efforts by increasing the accuracy of identifying various types of fraud over time. It will assist the FinVision system to have a better understanding and recognition of fraudulent activity patterns that may otherwise be difficult for a human to identify. As a result, the efficiency of the system in preventing any future fraudulent transactions is improved. It also will greatly reduce the amount of work done by bank employees by eliminating manual transaction processing and only highlighting transactions that have been determined to be of a higher level of risk.
