Role of Big Data in Regulating and Combating Financial Fraud in India

Financial fraud is a significant concern for the Indian economy, with the country's banking sector reporting frauds worth over ₹1.85 lakh crore in 2020-21. Big data analytics has emerged as a critical tool for detecting and preventing financial fraud. The implementation of big data analytics within India's financial sector has the potential to yield substantial annual cost savings through enhanced fraud detection and prevention mechanisms. This technological advancement serves to safeguard both consumers and businesses while simultaneously reinforcing the banking system’s integrity. The widespread adoption of comprehensive big- data solutions across financial institutions may contribute to increased investor confidence and promote long-term economic stability in India. This study examines the role of big data analytics in detecting and preventing financial fraud in India, focusing on its applications, benefits, and challenges. This study systematically reviews the existing literature to identify the key features of big data analytics that enable its use in financial fraud detection. The study also identifies the challenges associated with the use of big data analytics in financial fraud detection and provides recommendations for addressing these challenges. The findings of this study have significant implications for organizations, regulators, and policymakers seeking to leverage big data analytics to detect and prevent financial fraud.