International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056 Volume: 11 Issue: 07 | July 2024
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p-ISSN: 2395-0072
Artificial Intelligence in Retail Fraud Detection: Enhancing Payment Security Abhinav Chunchu Wilmington University, USA -----------------------------------------------------------------------------***-------------------------------------------------------------------------
Abstract: This comprehensive study explores the application of Artificial Intelligence (AI) in fraud detection within the retail sector, focusing on the challenges posed by the rapid growth of e-commerce and the evolution of fraudulent activities. The paper examines various AI methodologies, including supervised, unsupervised, and reinforcement learning, and their effectiveness in detecting and preventing fraud. It delves into the critical aspects of data collection, preparation, feature engineering, and the intricacies of model training and evaluation. The research also investigates the implementation of real-time fraud detection systems, discussing key components, integration challenges, and performance metrics. Finally, the study proposes innovative solutions to the major challenges faced in AI-driven fraud detection, such as data quality, false positives/negatives, regulatory compliance, and scalability. Keywords: AI Fraud Detection, E-commerce Security, Machine Learning Algorithms, Real-time Transaction Analysis, Data Preprocessing Techniques 1. Introduction: The retail sector has witnessed an unprecedented surge in online transactions, fundamentally transforming the landscape of commerce. Global e-commerce sales skyrocketed to $4.9 trillion in 2021, marking a 16.8% increase © 2024, IRJET
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