Fraud detection is like a security system for businesses and individuals. It’s a smart way to spot and stop clever activities designed to steal money or information. Imagine someone trying to use your credit card without your permission—that’s fraud.
Tools
Fraud detection uses special tools and techniques to watch for unusual activity. It’s like having a detective that constantly monitors your accounts and transactions, looking for things that don’t seem right. For example, if you suddenly start making large purchases from a different country, the system might flag that as suspicious.
Technologies
These systems use clever technology like artificial intelligence (AI) and machine learning (ML) to learn your normal spending habits. They can spot patterns and identify unusual behavior, such as sudden changes in spending, multiple login attempts from different locations, or transactions that don’t match your usual shopping patterns.
By using these advanced tools, businesses and individuals can protect themselves from fraudsters. It’s like having an extra layer of security that helps keep your money safe and prevents identity theft.
