Fraud Detection is the process of identifying and preventing unauthorized or suspicious financial activities using systems, analytics, and monitoring tools.
Fraud Detection involves analyzing transactions and user behavior to detect anomalies and prevent financial fraud such as identity theft, credit card fraud, or online scams.
Banks and fintech companies use advanced technologies like AI, machine learning, and real-time monitoring systems to identify suspicious activities.
In India, fraud prevention frameworks are guided by the Reserve Bank of India.
"If a bank detects an unusual high-value transaction from a new location, it may block the transaction and alert the customer."