AI-Driven Fraud Detection in Indian Banking: A Statistical Approach

Online banking is now a pillar of India's digital economy, with millions of transactions happening every day in Indian Rupees (INR). But this growth in digital transactions has also brought with it a growth in online banking fraud, and therefore the need for sophisticated detection systems. Artificial Intelligence (AI) has been found to be a key weapon against fraud by utilizing statistical techniques. This aper examines the way AI-powered systems apply statistical methods like anomaly detection, machine learning, and predictive modeling to identify fraudulent transactions in INR. Real-life examples and case studies of the Indian banking industry are presented to demonstrate the use of such approaches. The paper also discusses the statistical approaches in greater detail, discussing their mathematical basis and real-world implementations.