AN OVERVIEW OF FINANCIAL RISK TYPES AND THE SIGNIFICANT ROLE OF ARTIFICIAL INTELLIGENCE TECHNOLOGIES IN THEIR MITIGATION

Аннотация

This article analyzes the integration of artificial intelligence and cybersecurity technologies against the backdrop of emerging digital threats in modern financial systems. The article scientifically highlights the development of mechanisms for detecting, assessing and preventing financial fraud, cyberattacks and other risks using artificial intelligence. It also provides theoretical justification and practical examples of how these technologies can jointly strengthen thesecurity ofthefinancial sector. Key words:artificial intelligence, financial security, cyberattack, financial technologies (FinTech), machine learning, anomaly detection, threat response system, risk monitoring Risk management has become a fundamental component of sustainable business operations in the rapidly changing financial landscape of today.Market volatility, credit defaults, operational disruptions, and cybersecurity threats are among the numerous risks to which financial institutions and enterprises are becoming more susceptible.Decision-makers who are striving to protect assets, maintain regulatory compliance, and guarantee long-term profitability face substantial obstacles due to the complexity and unpredictability of these risks.Decision-makers who are striving to protect assets, maintain regulatory compliance, and guarantee long-term profitability face substantial obstacles due to the complexity and unpredictability of these risks.With the advent of digital transformation, (AI) has emerged as a powerful tool in the financial sector, offering advanced capabilities for identifying, analyzing, and mitigating various forms of financial risk. AI such as machine learning, natural language processing, and predictive analytics—enable institutions to process massive volumes of data in real time, uncoverhidden patterns, and makemore informed and proactive decisions. Cybersecurity is extremely important in the field of financial technology. The use of artificial intelligence (AI) algorithms to detect, analyze, and respond to threats in real time greatly improves theeffectiveness offinancial protection systems. AI systems that work in tandem with page1616 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue06,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai cybersecurity tools protect financial institutions not only from existing threats, but also from emerging risks. This integration is critical to ensuring financial stability, increasing customer trust, and strengthening economic security. In the financial industry, cybersecurity is of great importance, as each individual using financial services faces the risk of having their financial data compromised. Every transaction involves a certain level of risk, particularly in terms of access to personal and corporatedata. The maintypes of threats include: Phishing – A form of internet-based financial fraud that aims to obtain a user's identification data (such as login credentials and passwords for bank accounts or cards) through deceptive onlineplatforms. Smishing – A type of phishing that uses SMS messages to trick users. Fraudsters send messages containing links to fake websites, prompting victims to enter sensitive financial information orpayment credentials. Vishing – A voice phishing method where fraudsters call the victim, impersonating a bank employee or another trustworthy figure, to manipulate them into revealing confidential information orauthorizing financial transactions. Pretexting – A method of social engineering where the fraudster fabricates a scenario to impersonate someone else, often usingpreviously obtained personal details such as date of birth, passport number, or taxpayer ID to gain the victim’s trust and extract sensitive financial data. Thistype of fraud is commonlycarried outthrough phonecalls or emails. Malware – Refers to malicious software designed to steal confidential data or money from individuals and financial institutions. This includes banking details, personal information, and other data that can be exploited for fraud. Malware is often spread through phishing, fake emails, orseemingly legitimate websites that trick users intoinstalling harmful software. Preventing financial fraud requires a proactive and multi-layered approach. Here are some of themosteffective and practical strategies that organizations and institutions can adopt: Preventive Measures: Regular security audits, ongoing employee training, up-to-date protective protocols, and consistently updated systems are fundamental in reducing vulnerabilities. Staying onestep ahead through prevention is often thebest defense. Technological Solutions: Tools like multi-factor authentication, strong encryption techniques, blockchain applications, and biometric verification systems offer robust layers of protection. Thesetechnologies help secure bothuser identityand transaction integrity. Real-Time Monitoring: A