Fraud Detection System

byPaytm Editorial TeamLast Updated: August 12, 2025

Meaning

A Fraud Detection System is a technology-based system that identifies suspicious or unauthorized transactions in real-time to prevent financial fraud.

Key Features

  • Uses AI, machine learning, and rules-based checks
  • Monitors transactions for unusual patterns
  • Sends alerts or blocks risky activities
  • Protects users and businesses from financial loss

These systems are critical in banking, payments, and fintech platforms to ensure security.

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