A fraud detection system analyzes transactions and account activity in real time to flag payments that look suspicious, using a combination of rules, machine learning models, and signals like device, location, and behavior. Each transaction gets a risk score that decides whether it is approved, challenged, or blocked.<\/p>\n\n\n\n
Blocking too little means chargebacks and direct losses, while blocking too much turns away genuine customers \u2014 and both errors are expensive. Static rules alone fall behind quickly, since fraudsters adjust to whatever they learn the rules are.<\/p>\n\n\n\n