AI Literacy and Critical Thinking in Strengthening Students' Fraud Detection Capability in a Cashless Society

Purpose: This study analyzes the effect of Artificial Intelligence (AI) literacy on critical thinking and fraud detection capability, and the effect of critical thinking on fraud detection capability, among university students in Indonesia's cashless society. 
Research Methodology: A quantitative cross sectional survey was conducted with 120 active students on the island of Java who had used digital transaction services. Participants were selected through purposive sampling. Data were collected using an online questionnaire with a five point Likert scale and analyzed with simple linear regression in Jamovi. 
Results: AI literacy had a positive and significant effect on critical thinking (β=0.688, p<0.001, R²=0.473) and on fraud detection capability (β=0.689, p<0.001, R²=0.474). Critical thinking also had a positive and significant effect on fraud detection capability (β=0.691, p<0.001, R²=0.478). All three hypotheses were supported.
Conclusions: The ability to understand and use AI, accompanied by critical thinking, helps students recognize and detect fraud in digital transactions.
Limitations: The sample was limited to 120 students in Java, the design was cross sectional, and the hypotheses were tested with separate simple regressions based on self reported data.
Contributions: The study links AI literacy, critical thinking, and fraud detection capability in one framework and supports integrating both competencies into higher education to prepare students for digital financial fraud risks.