Exploring AI-Enabled Security Protocols for Protecting User Data in Digital Wallet Ecosystems

Abstract

The proliferation of digital wallets and their increasing use for managing personal, financial, and transactional data has made them a critical component in the digital economy. While these technologies offer convenience and efficiency, they also raise significant concerns related to security and the protection of user data. This paper explores the application of artificial intelligence (AI) in strengthening security protocols within digital wallet ecosystems. It examines the potential of AI to detect, prevent, and mitigate security threats, such as data breaches, fraud, and unauthorized access. Through the integration of AI, digital wallets can enhance user trust and ensure the secure management of sensitive data. The paper presents an overview of existing AI-driven security mechanisms, evaluates the challenges they face, and proposes solutions based on AI advancements in cryptography, anomaly detection, and user behavior analysis. The research also includes an experimental analysis to assess the effectiveness of AI-enabled security protocols in mitigating common security threats in digital wallets. The results indicate that AI-based solutions significantly improve the resilience of digital wallets against security threats, providing an enhanced level of protection for user data.