AI-Driven Cyber Fraud Detection Framework for Secure Digital Finance: The DharmaCoin Blockchain Model

Abstract

DharmaCoin is an artificial intelligence-based cyber fraud detection system that is supposed to establish a safe and moral online financial system. The suggested model enables combining blockchain security, fraud detection with the use of artificial intelligence, biometric multi-factor authentication, and secure document verification to enhance the safeguarding of digital financial crimes. It has a framework built on the values of Indian philosophies based on logic, transparency, and ethical governance and in the name of responsible and trust-worthy digital finance. DharmaCoin manages to identify transaction fraud with a 97% F1-score and forged/altering documents with 99% accuracy in using state-of-the-art technologies SatyaAI, a real-time deepfake and identity-checking tool, and RishiGuard, an anomaly financial activity detecting tool, in 200 milliseconds. The system uses a Proof-of-Stake blockchain registry to ensure unalterable records of transactions, and to increase the level of transparency within financial deals. Performance checks show that the blockchain infrastructure has the capability of handling a rate of transactions of over 1000 transactions in less than five minutes as well as be able to verify transactions in less than five seconds hence scaling to high financial volume environments. A Pilot project involving a banking partner found that a reduction of up to 40 in time to process KYC manually led to a faster approach to operations and better fraud detection. In general, DharmaCoin offers a safe, transparent, sustainable digital finance system, which is a moral and tech-centered solution to the prevention of cyber fraud and promotes the trustful financial ecosystem in accordance with the global sustainability development objectives.