Fraud Detection
Fraud detection is the identification of fraudulent transactions and unauthorised access, increasingly using machine learning and behavioural analytics rather than fixed rules alone.
What is Fraud Detection?
Definition
Fraud Detection is the identification of fraudulent transactions and unauthorised access, ideally while they are still in progress rather than in a monthly report. Rule engines catch the patterns somebody has already described; machine learning and behavioural analytics add the ones nobody wrote down, by scoring how far a transaction departs from what this account, device and channel normally do. The hard part is not detection but the trade-off around it — every threshold that catches more fraud also stops more legitimate customers, so fraud detection is tuned against a business cost rather than against an accuracy figure.
Role in cybersecurity
Fraud Detection plays an important role in building organizational resilience against cyber threats. Implementing appropriate mechanisms in this area is required by regulations such as NIS2, DORA and ISO 27001.