Fraud Detection and Mitigation in Cybersecurity Insurance
Muhammad Usman Tariq · Advances in computational intelligence and robotics book series · 2025
This chapter explores the pivotal role of artificial intelligence (AI) in transforming fraud detection and mitigation within the cybersecurity insurance industry. As cyber threats grow in complexity and frequency, the insurance sector faces mounting challenges to accurately identify and prevent fraudulent claims. The chapter delves into how AI technologies, particularly machine learning and predictive analytics, enable insurers to assess risk more effectively, detect anomalies in real-time, and improve the overall accuracy of claims assessments. It emphasizes the importance of data quality and volume, showcasing how historical claims data, incident reports, and threat intelligence databases fuel AI models to uncover potential fraud. Additionally, the chapter discusses the integration of AI systems with existing fraud detection workflows, balancing automation with human expertise. It examines best practices for designing AI-driven solutions that not only enhance detection accuracy but also maintain transparency, accountability, and regulatory compliance.