Close Menu
fintechbits
  • News
  • AI
  • Acquisitions
  • Trends
  • Insights
  • Rumors
  • Startups
  • finjobsly

Subscribe to Updates

Get the latest news from Fintechbits.

Trending Now

New Trade Exchange Regulations in Fintech Enhance Water Issues Management

July 10, 2025

STC Group invests in the Islamic financial technology startup Tarmez

July 10, 2025

The impact of AI on job roles in the finance sector

July 10, 2025

Icapital fintech raises over $7.5 billion in recent funding round.

July 10, 2025
Facebook X (Twitter) Instagram
Trending
  • New Trade Exchange Regulations in Fintech Enhance Water Issues Management
  • STC Group invests in the Islamic financial technology startup Tarmez
  • The impact of AI on job roles in the finance sector
  • Icapital fintech raises over $7.5 billion in recent funding round.
  • ICAPITAL Fintech Achieves a Valuation Exceeding $7.5 Billion in Recent Fundraising Amid Surge in Private Markets
  • Market size, share, trends, and business profiles in the Fintech industry
  • Meta Eyes 14b AI Investment, Bulsh Seeks IPO and Additional Speculation
  • Create a Culture of Innovation in Fintech and Life Sciences
Facebook X (Twitter) Instagram Pinterest Vimeo
fintechbits
  • News

    Unicorn Bank Zero represents the final achievement of his fintech journey.

    July 9, 2025

    Fintech Company Pine Labs Submits Documents to SEBI for IPO Fundraising

    July 4, 2025

    British Fintech Zilch Seeking International Tender Opportunities

    July 4, 2025

    Fintech Company Pine Labs Submits IPO Documents to SEBI for Fundraising, According to Reports

    June 26, 2025

    Breaking News: Initial lineup of demonstrations revealed for FinovateFall 2025

    June 12, 2025
  • AI

    The impact of AI on job roles in the finance sector

    July 10, 2025

    Highlighting AI in the Financial Sector at Boston Fintech Week 2025

    July 10, 2025

    Gartner Finance Conference 2025: Summit on AI and Autonomous Finance in London

    July 9, 2025

    St. Luke’s reduces costs by $13,000 per clinician using AI-driven pre-cartography summaries.

    July 9, 2025

    Understanding Agent AI and Its Significance in Finance

    July 9, 2025
  • Acquisitions

    African fintech leaders are shaping the industry through worldwide acquisitions.

    June 30, 2025

    Acrisure obtains significant funding to enhance its fintech strategy.

    June 14, 2025

    $200 million IPO SPAC aims for acquisitions in fintech and AI sectors.

    June 1, 2025

    Wealthsimple hires multiple teams to enhance family financial management.

    May 31, 2025

    The HPS of Morocco plans to acquire a Fintech company by 2027, referred to as CEO – TradingView News.

    May 3, 2025
  • Trends

    Market size, share, trends, and business profiles in the Fintech industry

    July 10, 2025

    Overview of the FINCH 2025 Market and Participant Profiles

    July 5, 2025

    Key Trends and Focus Areas in Fintech Payments for 2025

    June 22, 2025

    Overview of the Singapore Fintech Market: Market Size, Trends, and Growth Potential

    June 18, 2025

    Southeast Asia’s Fintech Market: Size, Trends, and Growth Potential

    June 13, 2025
  • Insights

    ICAPITAL Fintech Achieves a Valuation Exceeding $7.5 Billion in Recent Fundraising Amid Surge in Private Markets

    July 10, 2025

    Alphalésaka Technologies: The Potential Transformative Impact of Recent Fintech Acquisition

    July 9, 2025

    Surge Continuation Funds in Europe Prepared for the 2025 Records – Fintech Schweiz Digital Finance News

    July 7, 2025

    Schaeffer Investment Research Scholarships Break Through Significant Resistance Levels

    June 27, 2025

    Finance Magnates Reports: XBO Designated as Top Cryptocurrency Payment Gateway. XBO’s core principles of trust and simplicity align with cutting-edge solutions, providing customers access to an award-winning crypto payment option. 16 hours ago

    June 26, 2025
  • Rumors

    Meta Eyes 14b AI Investment, Bulsh Seeks IPO and Additional Speculation

    July 10, 2025

    Blackrock XRP ETF Speculation Ignites Interest in the Crypto Market

    July 9, 2025

    PayTM’s Share Price Drops by 10%: Understanding MDR and the Call from FinTech Companies for Government Action.

    July 5, 2025

    PayTM restricts 10% amid rumors of government cancellation of MDR – Is the expansion of UPI in India becoming a challenge for fintech companies? More details here.

    July 2, 2025

    The Giant Fintech Green Point Captivates Investment Capital Interest

    June 25, 2025
  • Startups

    STC Group invests in the Islamic financial technology startup Tarmez

    July 10, 2025

    Icapital fintech raises over $7.5 billion in recent funding round.

    July 10, 2025

    Today’s Crypto Update: Bitcoin, Cardano, XRP, Pi Network, and More Prices

    July 10, 2025

    Technological Strategies Employed by Companies to Capitalize on EP Opportunities During Mergers and Acquisitions

    July 10, 2025

    Crypto Lobby backs Dev Suite DOJ in ongoing Open Source Code efforts

    July 10, 2025
  • finjobsly
fintechbits
Home » New AI system aims to detect financial fraud
AI in Finance

New AI system aims to detect financial fraud

5 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
Fraudgcn Fraud Detection Ai.jpg
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

Researchers have developed a new artificial intelligence (AI) system to detect accounting fraud within individual companies and across supply chains and industries.

Machine learning technique FraudGCN analyzes trends in financial data and corporate relationships to identify and predict fraudulent activity. It uses graph theory and machine learning to examine the network of relationships between companies, their auditors, and industry peers.

“It’s a never-ending mathematical arms race between the authorities and the fraudsters,” Chen Xu Wanglead author of the paper and associate professor in the School of Software Engineering and the Smart Grid and Network Security Key Laboratory at Xi’an Jiaotong Universitysaid in a press release.

The development comes as financial markets grapple with the impact of accounting fraud. report reveals that 62% of financial institutions with assets over $5 billion are reporting an increase in financial crimes, revealing growing vulnerabilities in the U.S. banking sector. As fraud methods evolve, including the potential use of AI by criminals, there is growing interest in developing more effective detection methods.

Current methods of detecting financial fraud

Traditional fraud detection methods often rely on audits, which can be labor-intensive and fail to differentiate between a company’s real results and manipulated figures. These hurdles mean that many companies can remain unchecked for long periods of time.

Paul WnekFounder, CEO and Principal Solutions Architect at DevelopAPtold PYMMTS that there are several common types of fraud in businesses: “Invoice fraud, such as fictitious invoices for goods or services that were never delivered or legitimate invoices altered to divert funds. Vendor fraud, such as setting up fake vendors to receive payments for nonexistent goods or services or bribes to reward vendors or employees who approve contracts or invoices. Payment fraud, which can occur when fraudsters access payment systems or manipulate approval processes to authorize fraudulent payments.”

These patterns can be difficult to detect using conventional methods.

“What is needed is an efficient and accurate algorithm to automatically identify accounting fraud and leave behind the days of random audits,” said Mengqin Wanganother researcher involved in the FraudGCN project, according to the statement.

FraudGCN attempts to solve this problem by building multi-relational graphs representing the connections between companies. This allows the system to analyze trends across corporate networks.

When tested on data from publicly traded Chinese companies, the researchers found that FraudGCN outperformed current approaches by a margin of 3.15% to 3.86%.

However, the practical implications of these improvements for fraud detection are not yet clear.

The role of AI in fraud detection and perpetration

As AI’s role in fraud detection expands, experts note its potential to both detect and assist with fraud. Joe StephensonDirector of Digital Intelligence at Interteldiscusses the dual nature of AI in this context.

“In the insurance industry, we are salespeople, and as such, we often overlook the potential implications of emerging technologies like artificial intelligence on claims,” Stephenson told PYMNTS. “While AI is very useful for underwriting, we also see criminals leveraging ChatGPT and AI to enable fraudulent activity, whether through the development of synthetic identifiers or metadata.”

This introduces new challenges, as Stephenson explains: “Metadata is not traditional and the use of social media makes it easy for anyone to exaggerate allegations or organize criminal groups.”

However, AI can also be used to analyze large volumes of data.

“Advanced algorithms can analyze social media activity, identifying patterns and anomalies that might go unnoticed by human investigators,” Stephenson said.

THE “Financial Fraud Prevention Manual“The PYMNTS study examines how financial institutions can leverage advanced technologies like behavioral analytics and machine learning to combat digital-age fraud tactics, including AI-powered schemes, malicious bots and synthetic identities that evade traditional security measures.

Automation of fraud prevention

Alongside AI detection tools, the industry is also implementing automation of financial processes as a preventative measure.

“Automated accounting systems designed with the best security measures offer built-in fraud detection capabilities, such as anomaly detection and invoice matching algorithms,” Wnek said. “The best platforms are one-stop shops for all accounts payable tasks, resulting in fewer systems that data must flow between.”

This shift towards automation is an ongoing trend in the financial sector.

“While traditionally resistant to change, accounting teams have begun to recognize the value of automation to improve the efficiency and accuracy of processes such as accounts payable (AP) and accounts receivable (AR),” Wnek said. “AP automation completely eliminates this line item, reducing costs by 40 to 95 percent.”

Additionally, by reducing manual intervention in financial processes, automation can reduce the risks of certain types of fraud.

However, adopting these technologies comes with its challenges.

“The two biggest barriers to adopting accounts payable and accounts receivable digitization are cost and complexity,” Wnek said. “But these barriers are easily addressed when companies consider the return on investment compared to outsourcing customer support and financial processing.”

See more in: accounts payable, accounts receivable, AI, artificial intelligence, Financial crime, fraud, fraud detection, Fraud prevention, FraudGCN, Joe Stephenson, News, Paul Wnek, PYMNTS News

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

The impact of AI on job roles in the finance sector

July 10, 2025

Highlighting AI in the Financial Sector at Boston Fintech Week 2025

July 10, 2025

Gartner Finance Conference 2025: Summit on AI and Autonomous Finance in London

July 9, 2025
Leave A Reply Cancel Reply

Latest news

New Trade Exchange Regulations in Fintech Enhance Water Issues Management

July 10, 2025

STC Group invests in the Islamic financial technology startup Tarmez

July 10, 2025

The impact of AI on job roles in the finance sector

July 10, 2025
News
  • AI in Finance (1,343)
  • Breaking News (155)
  • Corporate Acquisitions (65)
  • Industry Trends (178)
  • Jobs Market News (290)
  • Market Insights (191)
  • Market Rumors (243)
  • Regulatory Updates (150)
  • Startup News (905)
  • Technology Innovations (154)
  • X Feed (1)
About US
About US

FintechBits is a blog delivering the latest news and insights in fintech, finance, and technology. We cover breaking news, market trends, innovations, and expert opinions to keep you informed about the future of finance

Facebook X (Twitter) Instagram Pinterest Reddit TikTok
News
  • AI in Finance (1,343)
  • Breaking News (155)
  • Corporate Acquisitions (65)
  • Industry Trends (178)
  • Jobs Market News (290)
  • Market Insights (191)
  • Market Rumors (243)
  • Regulatory Updates (150)
  • Startup News (905)
  • Technology Innovations (154)
  • X Feed (1)
Happening Now

November 28, 2024

“ Intentionally collaborative ”: how the Rotman school of U of T leads Innovation Fintech

February 6, 2025

‘1957 Ventures’ to Drive FinTech Innovation in Saudi Arabia

September 10, 2024
  • About FintechBits
  • Advertise With us
  • Contact us
  • Disclaimer
  • Privacy Policy
  • Terms and services
  • BUY OUR EBOOK GUIDE
© 2025 Designed by Fintechbits

Type above and press Enter to search. Press Esc to cancel.