Framework for Early Detection of Banking Frauds

Abstract

Banking industry in India has been under serious transformations in past two decades. Introduction of net banking, mobile banking and Artificial Intelligence has changed the perception of customers and their expectations. But in recent past continuous rise in banking frauds has been observed and that had a serious impact on India's economy. Bank fraud is an act of crime with a motive of obtaining money or assets by fraudster by exploiting vulnerabilities. Cyber-Crime is the new face in banking frauds and with the rise of internet and mobile technologies, incidents of cybercrime has grown significantly as users in India are still new to this digital means of banking. This paper is an attempt to explore banking fraud incidents in recent times and to explore approaches to detect such cases. Finally a framework has been developed to facilitate early detection of fraud in banking operations. On successful implementation this framework shall add value to banking operations.