Credit Card Fraud Detection: Use of Artificial Intelligence

Abstract

According to Minchin (2025) fraud is UK’s biggest financial threats, which includes over 2 million cases reported between January and July in 2025 alone. This sums up to over £620 million lost just in the first half of 2025. With regards to its origins, over 70% of fraud incidents starts online, and about 17% over a simple telephone call. However, banks and financial institutions introduce new tactics to reduce fraud incidents daily. Minchin (2025) also explains that UK banks were able to reimburse 98% of victims caught up in fraud incidents where criminals had gained access to their accounts or cards and had stolen money. Whereas, through authorized push payments methods, or APP for short, which ideally means that the victims were on the phone with criminals who had tricked then into sending them money through bank transfers. Banks were able to identify the genuineness of these cases as was able to return money of approximately 62% of such victims. On this paper, fraud and scams pertaining to credit cards are explained and how artificial intelligence and machine learning models, and even generative AI, can be used to identify and prevent such fraudulent activities are discussed.