Detection of Bank Transaction Fraud Using Machine Learning

Bank transaction fraud detection has emerged as an important area of research in the economic sector, driven by the developing sophistication of fraudulent activities and the considerable economic losses they entail. This paper reviews numerous methodologies and technologies employed in the real-time identification and mitigation of fraudulent transactions, including traditional statistical techniques, machine learning algorithms and advanced artificial intelligence strategies. It enhances the need to combine anomaly detection structures with behavioral analytics to enhance detection accuracy while addressing challenges like data privacy, the need to balance false positives and negatives and the need for adaptive systems. By evaluating the most recent developments and case studies, this study provides a comprehensive assessment of what is happening in bank transaction fraud detection and presents future directions for enhancing safety features.