Technology
Can AI-Powered Security Prevent $4.2 Billion in Banking Fraud?
Global Banking and Finance Review
Company
The numbers tell a scary story. Cybercriminals are getting smarter every day. According to the FBI’s Internet Crime Complaint Center, financial fraud remains one of the most reported cybercrimes, accounting for billions in reported losses each year. That’s real money stolen from real people trying to pay their bills, save for retirement, or send money to family.
Banks know they're in trouble. The old ways of protecting customer accounts just don't work anymore. Passwords that seemed rock-solid five years ago crumble under modern attacks. Criminals buy stolen login information on the dark web for pocket change, then waltz into bank accounts like they own the place. Some hackers use artificial intelligence to crack security codes faster than humans can type them.
Smart banks are fighting back with security systems that think like detectives and move like computers. These aren't your grandfather's bank vaults with steel doors and combination locks. Modern bank security happens in milliseconds, analyzing dozens of clues to figure out whether someone trying to access an account is the real customer or a thief with stolen information.
Sesha Sai Sravanthi Valiveti spends her days building these invisible shields. She works for one of America's biggest banks, creating security systems that protect millions of people who have no idea she exists. Her current project involves designing advanced security measures for digital banking—think of it like building a really smart bouncer who only lets the right people in, and keeps the fraudsters out.
“People expect banking to be instant these days,” Sesha Sai Sravanthi Valiveti said. “You tap your phone and want to see your balance right away. But behind that simple tap, our security systems are making rapid, sub-second decisions to make sure you're you and not someone trying to steal your money.”
Her work covers seven different types of protection that all work together like a team of security guards. Authentication systems verify that customers are who they claim to be. Authorization controls decide what people can do once they prove their identity. Multifactor authentication adds extra security layers when something seems unusual. Fraud detection algorithms spot suspicious behavior patterns. Federation services connect different banking platforms securely. Widget and user interface development make security measures easy to understand. Additional security features adapt to new tricks that criminals invent.
The technical guts of these systems use C# programming to build the core security logic. Think of C# as the language that tells computers how to be suspicious in all the right ways. REST APIs handle communication between mobile banking apps and the bank's main computers, like translators that help different systems talk to each other securely.
SOAP services keep older banking systems talking to newer ones. Most big banks run on computer systems that are decades old but handle millions of transactions perfectly. These legacy systems need special interpreters to work with modern security measures. Windows Communication Foundation (WCF) applications can use TLS or message-level WS-Security for encryption; WCF itself is a framework, not a tunnel.
ASP.NET MVC frameworks power the websites where people do their online banking. These need strong protection because web browsers are favorite targets for hackers who try everything from fake login pages to malicious code injection. SQL databases store all the customer information, transaction histories, and security profiles that help the system recognize normal behavior versus suspicious activity.
Modern bank security works like a neighborhood watch program that never sleeps. The system learns how each customer normally behaves. Maybe you always check your account during lunch breaks from your work computer. Maybe you prefer mobile banking late at night from your couch. Maybe you never make big purchases on weekends.
When someone tries to wire a large amount from your account at 3 AM using a computer in another state, the system notices that this doesn't match your usual patterns. It doesn't automatically block the transaction and lock you out of your account. Instead, it asks for additional verification to make sure the real account owner is behind this unusual activity.
The Federal Trade Commission’s Consumer Sentinel Report shows that smart security systems like these help reduce fraud losses each year. Every day, authentication systems handle high volumes of login attempts, taking into account factors such as typing speed, device type, location of connection, and typical banking times. All of this processing happens in sub-second response times so legitimate users rarely experience delays, while suspect activity is highlighted for review.
The authorization part of her system decides what people can do based on risk levels. Someone checking their balance from their usual phone during normal hours faces almost no restrictions. Someone trying to make a large international transfer from a brand-new device triggers additional security checks.
The fraud detection algorithms work like digital bloodhounds, sniffing out suspicious patterns across many accounts simultaneously. They're looking for coordinated attacks where criminals hit multiple accounts with similar techniques, unusual spending patterns that don't match customer behavior, and transaction requests that follow known fraud playbooks.
Financial institutions face significant fraud pressure, with 35% experiencing 1,000+ fraud attempts annually, according to Alloy’s 2024 Financial Fraud Report. The financial impact is substantial, with 57% of organizations reporting over $500,000 in direct fraud losses over twelve months based on Alloy’s State of Fraud Benchmark Report. Speed makes all the difference because preventing fraud is infinitely better than trying to recover stolen funds later.
During busy periods, major banks handle enormous transaction volumes, with each transaction undergoing multiple security checks that happen fast enough to avoid delays. Modern payment systems process and settle individual payments within seconds while maintaining comprehensive fraud protection across all platforms.
Federation services solve the puzzle of keeping security consistent across different platforms. Banking customers jump between smartphone apps, websites, ATMs, and payment services throughout their day. Each platform needs to recognize them securely without making them re-enter passwords and security codes constantly. The widget and interface development work focuses on making security measures feel natural rather than annoying, as confusing security prompts lead customers to choose weaker authentication options, making the entire system less secure.
NIST selected post-quantum encryption algorithms in 2022 and finalized the first standards (FIPS 203, 204, and 205) in August 2024. Integrating these across complex banking systems will take years of careful work.
Integration methods, authentication approaches, and fraud detection techniques developed now will become the foundation for next-generation systems that must defend against threats that don't exist yet.
Every time someone checks their bank balance, transfers money, or pays a bill online, they're depending on security systems that make countless protective decisions in the background. Behind every smooth transaction stands invisible infrastructure that works perfectly when nobody notices it. Security professionals like Sesha Sai Sravanthi Valiveti build the digital equivalent of bank vaults that adapt to new threats while keeping the doors open for legitimate customers who just want to manage their money without hassle.
Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. It involves implementing measures to safeguard sensitive data and ensure the integrity of financial transactions.
Fraud detection is the process of identifying and preventing fraudulent activities, particularly in financial transactions. It uses algorithms and monitoring systems to recognize suspicious behavior and protect customer accounts.
Multifactor authentication (MFA) is a security measure that requires users to provide multiple forms of verification before gaining access to an account. This enhances security by adding extra layers of protection.
Artificial intelligence (AI) in banking refers to the use of machine learning and algorithms to analyze data, automate processes, and enhance decision-making, particularly in fraud detection and customer service.
A REST API (Representational State Transfer Application Programming Interface) is a set of rules that allows different software applications to communicate with each other over the internet, facilitating data exchange.
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