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.

You May Also Like

What is External Benchmark Rate (EBR)?Last Updated: October 11, 2024

Understanding the Concept of EBR  External benchmark rate or external benchmark lending rate was implemented by the RBI…

NFC PaymentsLast Updated: August 12, 2025

Meaning The full form of NFC is Near Field Communication. NFC Payments use this short-range wireless technology to…