Authors

Authors: *Shadreck Mpanga

Abstract

The rapid expansion of digital banking has transformed the financial sector by enabling faster, more accessible, and scalable services. Technologies such as cloud computing and artificial intelligence (AI) have significantly improved international financial inclusion, connecting urban and rural populations to banking systems. However, this digital transformation has simultaneously increased vulnerability to cyber threats. With the rise in online transactions, traditional fraud detection systems are increasingly ineffective against sophisticated cybercrimes, including data breaches, identity theft, AI-generated deepfake identities, phishing attacks, and malware. Cloud-based financial systems, though efficient, introduce new potential points of attack. This paper highlights the growing challenges of cyber fraud in the digital banking era and underscores the urgent need for advanced, AI-driven fraud detection mechanisms to safeguard modern financial ecosystems.

Keywords