Blockchain and AI in Fintech: A Dual Approach to Fraud Mitigation

This study reviews fraud mitigation in the fintech sector due to the dual application of blockchain and artificial intelligence. Furthermore, the immutability ledger that supports transparency and accountability on the blockchain, and they successfully contain the risk of data and unauthorized financial transactions to some extent. In correlating millions of transactional data items in real-time, applying machine learning algorithms, it detects fraud and predicts it with high reliability. The proposed system describes an AI-based fraud detection system, namely the data acquisition and preparation phase, the training of AI models phase, and the monitoring phase. The advantages of AI-based fraud detection include high accuracy rates, instant monitoring in which a subsequent reaction can be initiated, minimal or no false positives, and cost efficiencies. This survey evaluates and examines current FinTech fraud detection methods, emphasizing the synergistic application of artificial intelligence and blockchain technologies. This study emphasizes implementation based on cost issues, its suitability for expansion and its legal concerns. It is applied to change many businesses, increase efficiency, decrease fraud, and bring innovation to the field of financial technologies.