Enhancing Fraud Detection Through Data Analysis

Enhancing Fraud Detection Through Data Analysis

Mohsin Javed*, Dr. Azra Ishrat**

*B. Com (Hons.) student, Amity University Uttar Pradesh, Lucknow

**Assistant Professor, Amity University Lucknow

Abstract

Fraud detection remains a critical challenge in the digital age, as financial institutions and consumers grapple with increasingly sophisticated fraudulent activities. This study investigates the role of data analysis and machine learning in enhancing fraud detection mechanisms, leveraging both primary survey data and secondary literature. A mixed-method approach was employed, including a structured questionnaire (N=100+) to analyze customer perceptions, fraud experiences, and trust in financial institutions. Key findings reveal that 58% of respondents have experienced financial fraud, with unauthorized transactions (49%) and fake investment schemes (35%) being the most prevalent. Statistical analysis demonstrates a negative correlation between fraud victimization and confidence in institutions (p < 0.05), while 40% of users are willing to share personal data for improved security. Younger demographics (18–25 years) prioritize biometric authentication, whereas older groups (36–45) favor stronger passwords. The study advocates for real-time monitoring systems, AI-driven predictive analytics, and transparency in fraud resolution to bridge gaps in consumer trust. Recommendations include integrating blockchain technology and targeted educational campaigns to bolster cybersecurity frameworks.

Keywords:

Fraud detection, data analysis, machine learning, financial security, predictive analytics, digital transactions, consumer trust, biometric authentication.