Cyber Threats and Digital Forensic Accounting: Identifying Financial Frauds in Online Banking Transactions

Abstract: The expansion of online banking has revolutionized financial transactions, enhancing accessibility and convenience for users. However, the increasing reliance on digital platforms has also led to a surge in cyber threats, including phishing, malware attacks, identity theft, and unauthorized transactions. Cybercriminals exploit system vulnerabilities, causing financial losses and reputational damage to financial institutions. Traditional fraud detection methods often fail to address the dynamic nature of cyber threats, necessitating the adoption of digital forensic accounting techniques. Digital forensic accounting integrates artificial intelligence (AI), machine learning (ML), blockchain analytics, and data mining to detect fraudulent activities in real-time. This paper explores the critical role of forensic accounting in identifying financial fraud in online banking transactions. It examines emerging cyber threats, their impact on financial institutions and customers, and the effectiveness of AI-driven fraud detection. Additionally, it discusses regulatory frameworks, cybersecurity measures, and best practices for fraud prevention. Strengthening digital forensic capabilities and fostering collaboration between banks, regulators, and law enforcement agencies are imperative in mitigating financial fraud and ensuring the integrity of online banking.