Machine Learning-Based Real-Time Fraud Detection in Financial Transactions
Geetha Manoharan, A. Dharmaraj, S. Christina Sheela, Kanchan Naidu, Madhu Chavva, Jitendra Kumar Chaudhary
Abstract
Financial transactions have been revolutionized as a result of the rapid expansion of digital technology, which has made them more accessible and facilitated their speed. Nevertheless, this further growth has also increased fraudulent conditioning, which poses a challenge to the creation of robust discovery procedures. Within the scope of this research, the functioning of machine literacy algorithms for the detection of fraud in real-time financial transactions is investigated. Through the utilization of both supervised and unsupervised literacy methods, the purpose of this study is to discover patterns and anomalies that are indicative of fraudulent gestures. We give a detailed examination of colorful machine literacy models, which include decision trees, support vector machines, and neural networks, and evaluate the performance of these models in detecting fraud in real-time. These models are incorporated into the suggested method, which results in a scalable system that is capable of recycling enormous volumes of sale data while maintaining a high level of delicacy and a low level of quiescence. The outcomes of the experiments show that there have been huge breakthroughs in the rates of discovery and the reduction of false positives, which is pushing for the eventuality of machine literacy to improve the safety and trustworthiness of financial administration systems. Through this investigation, the significance of continuous innovation in fraud detection approaches is brought to light to battle the ever-evolving challenges that are present in the financial sector.