Systematic review of fraud detection using AI and ML with an emphasis on telecommunication industry

Abstract

The telecommunications industry is one of the top industries affected by fraudulent activities. Given the financial impact, on top of confidentiality breaches, security concerns, and reduced service quality as well as consumer dissatisfaction, there is an immediate need to implement effective fraud detection approaches. While there have been different fraud detection systems implemented, technological advancements as well as the improved techniques of fraudsters have made the traditional approaches no longer efficient. This paper aims to further investigate the use of artificial intelligence (AI) and machine learning (ML) to create efficient and advanced fraud detection models based on the strategy used, models applied, accuracy of the system, as well as future research work suggested. A systematic review of 50 papers was conducted. The most prevalent strategy was supervised one, majority of papers used software instead of hardware, and the most common ML models were artificial neural network (ANN), support vector machines (SVM), and decision tree.