Treffer: Financial Fraud Detection Using Machine Learning

Financial fraud poses a significant threat to global economic stability, affecting individuals, institutions, and governments. Traditional fraud detection systems, which often rely on predefined rules and manual inspections, struggle to adapt to evolving fraudulent tactics. In this study, we explore the application of machine learning (ML) techniques to detect and prevent financial fraud with greater accuracy and efficiency. By leveraging supervised and unsupervised learning algorithms, the system can identify complex patterns and anomalies in large volumes of transactional data. We utilize a publicly available credit card fraud dataset to train and evaluate various models, including Logistic Regression, Decision Trees, Random Forest, Support Vector Machines (SVM), and Neural Networks. Performance is assessed using metrics such as accuracy, precision, recall, F1-score, and AUC-ROC. The results demonstrate that machine learning approaches significantly enhance fraud detection capabilities, reduce false positives, and offer real-time predictive analytics. This research highlights the potential of intelligent systems in strengthening financial security and provides insights into future developments in automated fraud prevention. Keywords- Financial Fraud, Machine Learning, Fraud Detection, Transaction Data, Classification Models, Anomaly Detection, Predictive Analytics, Supervised Learning, Data Mining, Real-time Monitoring.