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Hybrid Artificial Intelligence Framework for Real-Time Cloud Financial Fraud Detection and Adaptive Risk Mitigation

Dr.Vimal Raja Gopinathan

Senior Principal Consultant, Oracle Financial Service Software Ltd, Washington, USA

Abstract

Financial fraud has become increasingly sophisticated as financial institutions migrate transactions, customer data, payment services, and analytical workloads to cloud environments. Traditional rule-based fraud detection systems are often inadequate because they struggle to identify rapidly changing attack patterns, complex behavioural relationships, and previously unseen fraudulent activities. This study proposes a hybrid artificial intelligence framework for real-time financial fraud detection and adaptive risk mitigation in cloud environments. The framework combines supervised machine learning, unsupervised anomaly detection, deep learning, behavioural analytics, and rule-based expert knowledge to improve the accuracy and adaptability of fraud identification. A cloud-native architecture is proposed in which streaming transaction data are collected, preprocessed, analysed, and risk-scored in real time. Supervised models identify known fraud patterns, while unsupervised and deep-learning components detect emerging anomalies and behavioural deviations. A dynamic risk engine integrates these outputs with contextual information such as transaction history, device characteristics, location, authentication behaviour, and account activity. Based on the resulting risk score, the framework can automatically recommend or initiate adaptive mitigation actions, including transaction approval, additional authentication, temporary restriction, or investigation. The methodology also incorporates model monitoring, feedback learning, explainability, privacy protection, and adversarial resilience. The proposed approach aims to balance detection accuracy, response speed, scalability, interpretability, and operational cost, providing financial institutions with a flexible architecture for combating evolving forms of cloud-enabled financial fraud

Article Information

Journal

International Journal of Emerging Trends in Engineering and Management Research

Volume (Issue)

Vol. 10 No. 6 (2025): International Journal of Emerging Trends in Engineering and Management Research (IJETEMR)

DOI

https://doi.org/10.15662/ijetemr.2025.1006009

Pages

18957-18967

Published

November 19, 2025
Copyright

Open Access

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Dr.Vimal Raja Gopinathan (%2025). Hybrid Artificial Intelligence Framework for Real-Time Cloud Financial Fraud Detection and Adaptive Risk Mitigation. International Journal of Emerging Trends in Engineering and Management Research , Vol. 10 No. 6 (2025): International Journal of Emerging Trends in Engineering and Management Research (IJETEMR) , pp. 18957-18967. https://doi.org/10.15662/ijetemr.2025.1006009

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