The implementation of Machine Learning (ML) algorithms in fraud detection has proven to be highly effective, leveraging the capability to learn from historical fraud patterns and identify them in future transactions. ML algorithms excel in processing information rapidly and uncovering intricate fraud traits that may elude human detection. This advanced approach is particularly valuable across various industries where fraud detection is paramount in preventing the acquisition of money or property through deceptive means, such as check forging or unauthorized use of credit cards.

Fraud detection is a set of activities undertaken to prevent money or property from being obtained through false pretenses. Fraud detection is applied to many industries such as banking or insurance. In banking, fraud may include forging checks or using stolen credit cards.