Financial Fraud Detection Using Cyber Security

Abstract

Financial technology (fintech) and the rapid growth in mobile payment systems have transformed the financial sector with faster, more convenient and ubiquitous digital transactions. With the greater use of digital financial services, however, comes an increased risk of cyberattacks and financial fraud. Phishing, SIM-swap attacks, identity theft, faux Know Your Customer (KYC) methods and transaction manipulation are among the methods cybercriminals use to compromise mobile apps, digital wallets, APIs, and fintech platforms. While there are advanced cybersecurity solutions, such as AI-driven fraud detection, blockchain technology, biometric authentication, and multi-factor authentication, that have been developed to address these threats, there are several challenges to the effectiveness of these solutions. Challenges encompass data privacy, data model opacity, new fraud methods and regulatory intricacies. The research aims to explore the key issues related to detecting and preventing financial fraud in mobile payment and fintech settings. The study summarises the latest trends in cybersecurity, discusses the shortcomings of current fraud detection systems, and suggests a combination of explainable artificial intelligence, real-time analytics, behavioural authentication, and secure mobile architecture to address fraud more effectively. The proposed approach seeks to boost the accuracy of fraud detection, increase the transparency of the system, bolster user authentication and create a more flexible defence mechanism for new cyber threats in the digital financial system.

DOI: https://doi.org/10.24321/3051.4304.202606

How to cite this article:
Kaul U. Financial Fraud Detection Using Cyber Security. J Adv Res Comp Tech Soft Appl 2026; 10(2): 10-19.