1 Independent Researcher, RI, USA.
2 Independent Researcher, UK.
3 Communications Software (Airline Systems) limited a member of Aspire Software Inc, UK.
4 Independent Researcher, Nigeria.
Review Article
World Journal of Advanced Research and Reviews, 2024, 22(02), 1746-1760
Received on 07 April 2024 revised on 22 May 2024; accepted on 24 May 2024
In the era of digital transactions, the proliferation of financial fraud poses significant challenges to the security and integrity of financial systems worldwide. Amidst this landscape, the role of big data has emerged as a critical tool for detecting and preventing financial fraud in digital transactions. This Review explores the multifaceted role of big data in combating financial fraud, highlighting its capabilities in identifying fraudulent patterns, enhancing risk assessment models, and enabling real-time fraud detection mechanisms. Big data analytics leverage vast volumes of structured and unstructured data from various sources, including transaction logs, user behavior patterns, and external threat intelligence feeds, to detect anomalies and suspicious activities indicative of financial fraud. By employing advanced machine learning algorithms and predictive modeling techniques, big data analytics can analyze complex data patterns and identify deviations from normal behavior, enabling early detection of fraudulent transactions. Moreover, big data analytics play a crucial role in enhancing risk assessment models by incorporating a wide range of data points and variables, including transaction history, geographic location, device fingerprinting, and biometric data. These multidimensional risk assessment models enable financial institutions to assess the likelihood of fraud more accurately and efficiently, thereby reducing false positives and minimizing the impact on legitimate transactions. In addition to retrospective analysis, big data analytics enable real-time fraud detection mechanisms that monitor transactions in real-time and flag suspicious activities for further investigation. By leveraging streaming data processing and complex event processing technologies, financial institutions can detect and respond to fraudulent transactions in near real-time, mitigating potential losses and preventing further fraud. Furthermore, big data analytics facilitate collaborative efforts among financial institutions, regulatory authorities, and law enforcement agencies by providing a platform for sharing threat intelligence and best practices in fraud detection and prevention. Through data sharing initiatives and collaborative analytics platforms, stakeholders can leverage collective insights and expertise to combat evolving fraud schemes and cyber threats more effectively. In conclusion, the role of big data in detecting and preventing financial fraud in digital transactions is indispensable in today's interconnected and digitized financial ecosystem. By harnessing the power of big data analytics, financial institutions can enhance their fraud detection capabilities, improve risk assessment models, and collaborate more effectively to safeguard the integrity and trustworthiness of digital transactions.
Role; Big Data; Detecting; Preventing; Financial Fraud
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Ezekiel Onyekachukwu Udeh, Prisca Amajuoyi, Kudirat Bukola Adeusi and Anwulika Ogechukwu Scott. The role of big data in detecting and preventing financial fraud in digital transactions. World Journal of Advanced Research and Reviews, 2024, 22(2), 1746-1760. Article DOI: https://doi.org/10.30574/wjarr.2024.22.2.1575