A Study on the Role of Technology in Fraud Detection and Prevention in Indian Banks

The rapid digital transformation of the Indian banking sector has significantly enhanced financial inclusion, operational efficiency, and customer convenience. However, the expansion of digital banking platforms has simultaneously increased the vulnerability of financial institutions to sophisticated fraud risks, including phishing, cyber-attacks, identity theft, and unauthorized digital transactions. In this context, the adoption of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), biometric authentication, and real-time transaction monitoring has become central to modern fraud management frameworks. This study examines the role of technology in enhancing fraud detection and prevention in Indian banks. Primary data were collected from 151 banking customers in the Waghodia region of Vadodara district using a structured questionnaire. The data were analyzed using descriptive statistics, reliability testing, Pearson correlation, and linear regression analysis. The findings indicate a statistically significant positive relationship between technological adoption and the effectiveness of fraud detection mechanisms. Respondents strongly agreed that AI-driven monitoring systems, predictive analytics, and automated alert mechanisms contribute to faster response times and reduced fraud losses. The regression model demonstrates meaningful explanatory power in establishing the predictive influence of technological adoption on fraud prevention effectiveness. The study provides valuable insights for banking institutions, regulators, and policymakers seeking to strengthen digital risk management strategies in emerging financial markets