Enhanced Fraud Detection in Financial Transactions using Machine Learning

• Author(s): M Monika; Priyanka M; Nagalakshmi R G; M Lahari Reddy; Mohith T N
• Paper ID: 1715333
• Page: 1721-1727
• Published Date: 23-03-2026
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 9 March-2026

Abstract

As digital banking, online payments, and e-commerce rapidly evolve, financial transactions are increasingly vulnerable to fraud. Traditional fraud detection systems often produce high false positives and fail to adapt to changing tactics. Our solution employs advanced supervised learning algorithms like Random Forest, XGBoost, and Logistic Regression to accurately analyse transactional data and quickly identify fraudulent activity. By integrating sophisticated data preprocessing, feature engineering, and techniques to manage class imbalances, we significantly improve prediction accuracy. Our results show that these ensemble-based models outperform conventional classifiers, delivering enhanced fraud detection with fewer false alarms, ultimately strengthening transaction security and reducing financial losses in modern digital banking.

Keywords

Financial Fraud Detection, Machine Learning, XGBoost, Random Forest, Class Imbalance, Digital Transactions

Citations

IRE Journals:
M Monika, Priyanka M, Nagalakshmi R G, M Lahari Reddy, Mohith T N "Enhanced Fraud Detection in Financial Transactions using Machine Learning" Iconic Research And Engineering Journals Volume 9 Issue 9 2026 Page 1721-1727 https://doi.org/10.64388/IREV9I9-1715333

IEEE:
M Monika, Priyanka M, Nagalakshmi R G, M Lahari Reddy, Mohith T N "Enhanced Fraud Detection in Financial Transactions using Machine Learning" Iconic Research And Engineering Journals, 9(9) https://doi.org/10.64388/IREV9I9-1715333