Digital Payment Security Using AI

Digital Payment Security Using AI Suresh Shivaji Takale Research Scholar, Bharati Vidyapeeth (Deemed to be University), Pune Dr. Rahul Manjare Asst. Professor, Bharati Vidyapeeth (Deemed to be University), Pune Abhijit Kadam Institute of Management & Social Sciences Solapur Abstract Digital India has gained the momentum among the masseThe growing complexity of digital transactions necessitates advanced and resilient security mechanisms, positioning Artificial Intelligence (AI) as a critical solution. This study examines how AI enhances the security of digital payment systems by first outlining their structure and core security requirements, along with traditional safeguards and associated vulnerabilities. It highlights the role of AI-driven technologies, including machine learning and advanced algorithms, in improving threat detection and response capabilities. Key applications discussed include real-time transaction monitoring, behavioral analytics, predictive risk scoring, biometric authentication, and multi-factor authentication systems. The study also explores challenges related to integrating AI with existing security frameworks, addressing compatibility issues and proposing potential solutions. Ethical and privacy concerns surrounding AI deployment are critically analyzed. The findings indicate that AI significantly strengthens fraud detection, risk assessment, and overall system security. The paper concludes by emphasizing emerging trends in predictive analytics and offering directions for future research in securing digital payment ecosystems. Keywords: Digital Payment System Security, Cyber Security, Digital Transaction, Reduce Digital Fraud