Role of Artificial Intelligence in Fraud Detection in Banks: A Study in Coimbatore

Artificial Intelligence (AI) has become an important technology in the banking sector, particularly in identifying and preventing financial fraud.The rapid expansion of digital banking services has increased the number of online transactions, which also raises the risk of cyber fraud and unauthorized activities.In response to these challenges, banks are increasingly adopting AI-based systems to improve fraud detection and transaction monitoring.This study examines the role of Artificial Intelligence in detecting fraudulent banking activities in banks located in Coimbatore.It also analyzes customer perceptions regarding the effectiveness and reliability of AI-based fraud detection systems.Primary data were collected from 95 respondents using a structured questionnaire.Statistical tools such as percentage analysis, chi-square test, and ranking analysis were used to interpret the data.The results indicate that most respondents believe AI improves the speed and accuracy of fraud detection.At the same time, privacy protection and transparency were identified as key factors influencing customer trust in AI-driven banking systems.The study concludes that AI significantly strengthens banking security and enhances the safety of digital financial transactions.