AI in Fraud Detection By A Staff Writer / July 12, 2025 Welcome to your AI in Fraud Detection Level: Expert What is the primary goal of AI in fraud detection? Encrypting user data Identifying and preventing suspicious transactions or activities Automating transaction approvals Increasing transaction speed None Which type of algorithm is often used to detect anomalies in financial data? Isolation Forest Convolutional Neural Networks Recurrent Neural Networks K-Means Clustering None What is the role of machine learning in credit card fraud detection? Simplifying the payment process Identifying fraudulent transactions based on historical patterns Reducing credit limits Generating monthly statements None Which dataset challenge often arises in fraud detection tasks? The dataset is too small Class imbalance between fraudulent and non-fraudulent cases Lack of labeled data Data being scattered across servers None How does AI handle real-time fraud detection? By processing transactions after they are completed By analyzing transactions instantly to identify suspicious patterns By relying on manual input for verification By delaying transactions for human review None Time's up
