Enhancing digital security in the financial sector with AI, IOT, and blockchain
Zoran Čekerevac, Lydmila Prigoda, Petar Cekerevac · 2025
Integration of Artificial Intelligence (AI), the Internet of Things (IoT), and blockchain technology represents a significant step towards enhancing digital security in the financial sector. AI enables the identification of suspicious behavior patterns by real-time analysis of large amounts of data, thereby improving fraud detection and automating threat response. Based on historical data, the AI's predictive analytics assist in forecasting potential threats and enhancing proactive security measures. IoT devices gather real-time data, enabling financial institutions to swiftly respond to changes and make informed decisions while at the same time enhancing transaction security by monitoring network activities and recognizing suspicious patterns. Blockchain technology provides data integrity and transparency through decentralized ledgers, reducing the likelihood of fraud and increasing resilience to cyber-attacks. Smart contracts automate transactions, minimizing the risk of human error and fraud. By combining these technologies, financial institutions establish a robust framework for protecting their systems and processes, reducing the risk of fraud and cyber-attacks, and increasing user's trust. Security measures such as encryption, authentication, and regular software updates further ensure the safety of IoT devices and blockchain networks, thereby strengthening the overall digital security infrastructure in the financial sector. In this paper, the authors analyze the potential of each of these technologies and the synergy of their integration.