Meta-Heuristic Algorithms for Advanced Distributed Systems

13Leveraging Distribution Systems for Advanced Fraud Detection and Prevention in Finance

Venkateswararao Podile¹, Satish M. Dhoke², Shouvik K. Guha³, Frakruddin A. Ahmed⁴, T.V.N.J.L. Haritha⁵, V. Abhinav⁵, and M. Anirudh⁵

¹K. L. Business School, Koneru Lakshmaiah Education Foundation, Vaddeswaram, Andhra Pradesh, India

²Moreshwar Arts Science and Commerce College, Department of Commerce, Jalna, Maharashtra, India

³The West Bengal National University of Juridical Sciences, Kolkata, West Bengal, India

⁴School of Management, Presidency University, Bangalore, Karnataka, India

⁵Koneru Lakshmaiah Education Foundation, Vaddeswaram, Andhra Pradesh, India

13.1 Introduction

Traditional fraud detection (FD) and prevention techniques have relied on rule-based systems and, more recently, machine learning-based systems. It can result in significant financial losses, undermine trust in financial institutions, and compromise the security of personal and sensitive information. However, these techniques have limitations, and as fraudsters become more sophisticated, it is necessary to explore new ways to combat financial fraud. We will provide an overview of distributed systems (DSs), discuss traditional FD and prevention techniques, explore how DSs can be used to enhance these techniques, and present case studies of DSs in action in the financial industry. We will also discuss future directions for leveraging DSs and conclude with a summary of the chapter. Fraud in finance is a persistent and ...