Unmasking Financial Deception: Leveraging Machine Learning for Risk Analysis and Fraud Detection in Financial Markets

Throughout the past two centuries, the stock market has served as a vital source of income for countless individuals, and its significance in generating wealth is expected to endure in the years ahead. Many financial analysts have long aspired to predict the ebbs and flows of the stock market, but their attempts have yielded limited success. Thanks to the remarkable advancements in technology, characterized by exponential increases in processing power, enhanced storage capabilities, and sophisticated algorithms, the prospect of achieving this goal is now more promising than ever. However, breaking the stereotype that the stock market is exclusive to those well-versed in finance necessitates the development of a novel solution. This solution comprises of the application of different machine learning algorithms to inform interested users about the level of associated risks and frauds in the market. It uses the ESG risk dataset for training the model, risk analysis and fraud detection to overcome the existing barrier and ensure that the benefits are accessible to a wider audience.