Fraud Detection Systems

Fraud detection systems use machine learning to identify and prevent fraudulent transactions in real-time. They analyze transaction features (amount, location, time, device, merchant, user history) and predict probability of fraud. If fraud probability exceeds a threshold, the system blocks or challenges the transaction. Used by financial institutions (Stripe, PayPal), e-commerce companies (Amazon, Shopify), and marketplaces. A single fraud detection system can save millions in chargebacks, disputes, and customer refunds.