An AI Security Agent for Banking: Multi-Vector Fraud and AML Detection Across Retail and Corporate Accounts

Banks simultaneously face signature-based fraud (card-not-present attacks, account takeover, ATM cloning) and behavioural financial crime (structuring, layering, mule networks, business email compromise) -- two threat families with fundamentally different detection requirements. Static rule engines that reliably catch brute-force and high-velocity events are structurally blind to business-email-compromise (BEC) payment redirection, session hijacking, and money-laundering layering, which are engineered to appear indistinguishable from legitimate activity at the individual transaction or session level. This paper presents an AI security agent for retail and corporate banking that addresses this gap through a three-component fusion architecture operating on two parallel event streams: a transaction stream (card fraud, ACH/wire fraud, AML categories) and a session stream (account takeover, session hijacking, SIM-swap, insider abuse). Each stream combines an LSTM sequence model capturing per-account behavioural history, a statistical velocity/threshold monitor, and a graph/network module capturing account-counterparty relationship patterns (fan-in, fan-out, pass-through ratio) for money-laundering detection. Experiments on a synthetic event log of 237,669 transactions and 113,508 sessions across 13 threat categories and 3,470 simulated accounts demonstrate overall F1 of 0.787 (transaction stream) and 0.867 (session stream) for the proposed model, versus 0.562/0.733 for a rule-based baseline and 0.655/0.713 for an LSTM-only baseline. The agent includes a customer-facing transaction-verification chatbot (96.6% identity verification accuracy, 86.8% mass-reset attack detection) and an analyst case-summary assistant (99.3% action-recommendation F1), with Critical-tier automated response latency under 0.43 ms at the 95th percentile.

Innovations in Cardless Artificial Intelligence Banking: A Comprehensive Framework for Cyber Secure and Fraud Mitigation using Machine Learning Algorithms

The advent of cardless artificial intelligence (AI) banking heralds a paradigm shift in the financial landscape, offering users unprecedented security and convenience. This paper outlines a comprehensive framework designed to enhance cybersecurity, introduce auto-generated virtual cards, and mitigate fraud risks within cardless AI banking systems. The framework envisions a future banking architecture that employs AI-powered data cryptography to create secure virtual cards for seamless transactions. By emphasizing secure communication channels, it ensures the integrity of financial activities among banking systems, cardholders, and third-party vendors. AI-based authorization methodologies play a pivotal role in authenticating each transaction while proactively identifying potential fraud, demonstrating the framework's efficacy in fortifying cardless AI banking security. The initial approach, featuring an AI-driven, feature-based banking system, ensures the generation of virtual cards with encrypted data, minimizing information exposure and reducing fraud risks. Integrating a machine learning algorithm adds an additional layer of protection against potential fraudulent activities. In conclusion, the proposed framework establishes a holistic cybersecurity and fraud-mitigation paradigm for cardless AI banking systems. Its implementation empowers financial institutions to address security concerns associated with traditional banking, paving the way for a future banking landscape that is not only fraud-resistant but also secure and convenient for users.