Enhancing AI-Based Financial Fraud Detection with Blockchain
Abstract
Financial institutions increasingly rely on AI and machine learning models to detect and prevent fraudulent activities. However, the effectiveness of these models is often hindered by data quality issues and the lack of transparency in decision-making processes. This paper explores the use of blockchain technology to enhance AI-based financial fraud detection systems. By recording financial transactions and AI model decisions on a blockchain, we create a transparent and tamper-proof environment that ensures the integrity of both data and model outputs. Smart contracts are employed to automate the verification of transactions and trigger alerts for suspicious activities. Our experimental results indicate that the integration of blockchain with AI-based fraud detection improves the accuracy of fraud detection by 20% and reduces false positives by 15%. This approach offers a robust and trustworthy solution for combating financial fraud in a rapidly evolving digital landscape.
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References
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