fraud detection methods

Fraud detection methods involve various techniques to identify and prevent fraudulent activities. Common approaches include analyzing patterns in transactions to spot unusual behavior, using machine learning algorithms that learn from past fraud examples, and employing rules-based systems that flag specific triggers, like large purchases from new accounts. Additionally, data mining techniques sift through vast amounts of information to find hidden fraud indicators. Collaboration with banks and law enforcement can enhance these efforts. The goal is to protect individuals and organizations from financial loss while ensuring legitimate transactions are processed smoothly.