Fraud Detection
Identifying and preventing fraudulent activities using data analysis and machine learning techniques.
Understanding Fraud Detection
Fraud detection involves analyzing patterns, behaviors, and transactions to differentiate legitimate actions from fraudulent activities. It is widely used in banking, e-commerce, insurance, and cybersecurity to mitigate risks and prevent financial losses.
Key Techniques in Fraud Detection
Anomaly Detection – Identifies unusual patterns that deviate from normal user behavior.
Machine Learning Algorithms – Uses AI-driven models to detect fraud based on historical data.
Behavioral Biometrics – Tracks user behavior, keystrokes, and device fingerprints to detect impersonation.
Rule-Based Systems – Applies predefined fraud detection rules (e.g., flagging multiple failed login attempts).
Common Applications of Fraud Detection
1. Financial Fraud Prevention
Detects credit card fraud, account takeovers, and unauthorized transactions.
2. Identity and Account Protection
Prevents identity theft, fake account creation, and credential stuffing attacks.
3. Online Fraud Prevention in E-Commerce
Identifies fake reviews, bot-driven purchases, and payment fraud.