Enhancing Fraud Detection in Finance and Insurance: Harnessing the Power of Machine Learning and Advanced Data Analytics for Real-Time Insights
Abstract
This study did an exploration of the combination of the application of cross cutting-edge technologies in the finance and insurance sectors’ financial fraud detection mechanisms to identify, analyze, and prevent fraudulent activities efficiently and effectively, thereby appealing to a global community by demonstrating the cross-industry benefits of these innovations. The paper presents a review of some critical literature on the application of machine learning and advanced data analytics for real-time insights techniques to enable the detection of financial fraud and proposes a structure for fraud detection. The systematic and comprehensive literature review of techniques applicable to enhancing fraud detection in finance and insurance fraud detection may provide a foundation to future research in this field. The adoption of the findings of Sharma and Panigrahi (2013) show the most frequently used techniques includes but not limited to Regression Models; Neural Networks; Bayesian Belief Network; Decision Trees; Naïve Bayes; Nearest Neighbour Method; Fuzzy logic, Genetic Algorithm; and Expert Systems. They all fall into the ?classification category that fundamentally makes provision for remedial measures to the prevalent challenges of financial and insurance fraud data that the research discussed. The paper recommend that the identified possibilities in technology and data-driven solutions by this study should be effectively purified to possess the ability to face the hydra- headed tact and dynamics in financial and insurance fraud against the perpetrators as they always strive to innovate in the world of advancement.
Keywords
Data Analysis; Fraud Detection; Finance; Insurance; Machine Learning
References
Abdallah, A., Maarof, M. A., & Zainal, A. (2016). Fraud detection system: A survey. Journal of Network and Computer Applications, 68, 90-113. Adoji, V. A., PAUL, S. O., & EDINO, F. O. (2020). Corporate social responsibility as strategic management and community development tool by Zenith Bank PLC, Nigeria. International Journal of Management, 11(10), 1578-1592. Adoji, V. A., & Paul, S. O. (2021). Middle Level Supervisors and Knowledge Sharing in Organisations: A Review. Academia Letters, 2. Agba, M. S. et al (2022). COVID-19 and the workplace of higher educational institutions in developing market economies: Lessons, policy options and the emerging new normal [Special issue]. Corporate & Business Strategy Review, 3(2), 328-338. Al-Hashedi, K. G., & Magalingam, P. (2021). Financial fraud detection applying data mining techniques: A comprehensive review from 2009 to 2019. Computer Science Review, 40, Audu, E., Paul, S. O., & Ameh, A. (2017). Privitisation of power sector and poverty of power supply in Nigeria: A policy analysis. International Journal of Development and Sustainability, 6(10), 1218-1231 Bhattacharyya, S., Jha, S., Tharakunnel, K., & Westland, J. C. (2011). Data mining for credit card fraud: A comparative study. Decision support systems, 50(3), 602-613. Bokka, V. V. R. M. (2025). Crafting a comprehensive strategy to prevent fraud and enable recovery in mobile insurance in the USA. Duman, E., & Ozcelik, M. H. (2011). Detecting credit card fraud by genetic algorithm and scatter search. Expert Systems with Applications, 38(10), 13057-13063. Ferreira, S. C., Bruns, R. E., Ferreira, H. S., Matos, G. D., David, J. M., Brandão, G. C., ... & Dos Santos, W. N. L. (2007). Box-Behnken design: an alternative for the optimization of analytical methods. Analytica chimica acta, 597(2), 179-186. Kirkos, E., Spathis, C., & Manolopoulos, Y. (2007). Data mining techniques for the detection of fraudulent financial statements. Expert systems with applications, 32(4), 995-1003. Kou, Y., Lu, C. T., Sirwongwattana, S., & Huang, Y. P. (2004, March). Survey of fraud detection techniques. In IEEE international conference on networking, sensing and control, 2004 (Vol. 2, pp. 749-754). IEEE. Ngai, E. W., Chau, D. C., & Chan, T. L. A. (2011). Information technology, operational, and management competencies for supply chain agility: Findings from case studies. The Journal of Strategic Information Systems, 20(3), 232-249. Ojonemi, P. S., Enejoh, W., Olatunmibi, O., & Enejoh, A. (2013). Examination malpractice: Challenges to human resource development in Nigeria. International journal of capacity building in education and management, 2(1), 91-101. Ojonemi, P. S., & Ogwu, S. O. (2013). Rural development policies and the challenges of realizing the millennium development goals in Nigeria. Mediterranean Journal of Social Sciences, 4(2), 643-648. Omisore, O., Eri, K., & Paul, S. O. (2014). Federal Airports Authority of Nigeria (FAAN): A chronological description of its functionality in the aviation industry. Journal of Good Governance and Sustainable Development in Africa, 2(2), 193-202. Onechojon, U. T., Ojonemi, P. S., & Mark, O. (2013). Green Audit and Environmental Sustainability in Nigeria: Unveiling Corporate Perspectives. International Journal of Public Administration and Management Research, 2(1), 101-111. Orokpo Ogbole F. E., PAUL, S. O. (2022). ICT in post Covid-19: exploring the new normal for achievement of sustainable development goals in Nigeria. International Science Journal of Management, Economics & Finance. 1(5), 46-54. doi: 10.46299/j.isjmef.20220105.06. Paul, S. O., Enojoh, A., Omisore, O., & Enejoh, W. (2014). Deficit in Religious Practice in Nigeria: Implications for National Development. Developing Country Studies, 4(4). Paul, S. O. (2019). National urban development policy and the unanswered development question of slum in Nigeria. International Journal of Public Policy and Administration Research, 6(2), 102-115. PAUL, S O. (2019). National Civil Aviation Development Strategy and Scio-Economic Growth in Nigeria. International Journal of Social Sciences and Humanities Reviews Vol.9 No.1, January 2019; p.159 – 171. Paul, S. O., & Chikelue, O. (2020). The inclusive and sustainable industrial development policy: which way for Nigeria? Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine, (4), 157-169. Paul, S. O., Yakubu, A., & Apeh, G. I. (2020). Obasanjo’s administration anti-corruption campaign in Nigeria and salient governance implications. Journal DOI, 6(10). PAUL, S. O., & Ofuebe, C. (2020). Unabated corruption in the government of Nigeria despite the Economic and Financial Crimes Commission: Who Bells the Cat? Society & Sustainability, 2(2), 45-58. Paul, S. O., & Ofuebe, C. (2021). Nigerian Industrialisation Challenges and Dearth of Galvanization amidst the United Nations Industrial Development Support. Journal of International Cooperation and Development, 4(1), 80-80. Paul, S. O., & Adoji, V. A. (2022). GDP as Development Indicator and the Challenges of Actualising SDG 8: Inclusive and Sustainable Economic Growth. Journal of International Cooperation and Development, 5(3), 62. Paul, S. O., & Adoji, V. A. (2022). GDP as Development Indicator and the Challenges of Actualising SDG 8: Inclusive and Sustainable Economic Growth. Journal of International Cooperation and Development, 5(3), 62. PAUL, S. O., & Ofuebe, C. (2024). The Value Addition of National Civil Aviation Policy Implementation to Airport Development in Nigeria: A Qualitative Assessment. International Journal of Aviation, Aeronautics, and Aerospace, 11(3), 1. PAUL, S. O., Okolie, C. A., & Nnamdi-Chiawa, C. R. (2025). The emergence of civil aviation as critical public sector in Nigeria: an industry from grass to grace. International Science Journal of Management, Economics & Finance, 4(1), 9-22. Quah, J. T., & Sriganesh, M. (2008). Real-time credit card fraud detection using computational intelligence. Expert systems with applications, 35(4), 1721-1732. Ravisankar, P., Ravi, V., Rao, G. R., & Bose, I. (2011). Detection of financial statement fraud and feature selection using data mining techniques. Decision support systems, 50(2), 491- Salisu, O. P., & Ofuebe, O. (2019). Aviation Roadmap and development of airports in Nigeria. Journal of Good Governance and Sustainable Development in Africa, 5(1), 1-24. Salisu, P. O. (2022). Unemployment, poverty and governance questions in Nigeria: Human capital development and partnership approach options. Seeja, K. R., & Zareapoor, M. (2014). Fraudminer: A novel credit card fraud detection model based on frequent itemset mining. The Scientific World Journal, 2014(1), 252797. Sharma, A., & Panigrahi, P. K. (2013). A review of financial accounting fraud detection based on data mining techniques. arXiv preprint arXiv:1309.3944. Srinivasagopalan, L. N. (2022). AI-enhanced fraud detection in healthcare insurance: A novel approach to combatting financial losses through advanced machine learning models. European Journal of Advances in Engineering and Technology, 9(8), 82-91. West, J., & Bhattacharya, M. (2016). Intelligent financial fraud detection: a comprehensive review. Computers & security, 57, 47-66. Zhou, W., & Kapoor, G. (2011). Detecting evolutionary financial statement fraud. Decision support systems, 50(3), 570-575.
More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT
Operational Resilience in Financial Services: An Integrated Risk, Control, and Analytics Framework
Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma
Impact of Data Analytics Adoption on Audit Quality in the Public Sector Accounting Reporting
Author: Ikenna, Ogochukwu Eunice
Cashflow Management and the Performance of Commercial Banks in Nigeria
Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele
Artificial Intelligence-Driven Internal Control Systems and Cybercrime Prevention in Nigerian Deposit Money Banks
Author: Fasola Job Adedokun, Olojede Samson Olusola FCA
The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria
Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye