This article examines the transformation of fraud detection in the banking sector through the integration of advanced data pipelines, machine learning (ML), artificial intelligence (AI), and cloud computing technologies. We analyze how modern data pipelines enable real-time processing of vast transactional datasets, significantly improving the timeliness and accuracy of fraud detection. The article explores the application of ML models in identifying suspicious patterns and the role of AI-driven systems in continuously adapting to evolving fraud schemes while reducing false positives. We evaluate the impact of cloud platforms such as AWS, Azure, and Google Cloud in providing scalable, cost-efficient infrastructures for processing massive datasets and supporting seamless integration with ML models. The article presents case studies of successful implementations by major banks, demonstrating substantial reductions in processing times and improved detection efficiency. Additionally, we address key challenges including data quality maintenance, model interpretability, and false positive mitigation. The article concludes by discussing future innovations such as Federated Learning and Explainable AI (XAI), which promise to enhance cross-institutional collaboration and decision-making transparency in fraud detection. This comprehensive analysis provides valuable insights for financial institutions seeking to enhance their fraud detection capabilities in an increasingly complex digital landscape.
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