Enhancing Financial Fraud Detection Using a Hybrid Blockchain–AI Approach

Financial fraud is a serious problem in the digital economy, with billions being lost each year. Conventional fraud detection schemes are usually insufficient in real-time processing, false positives, and adaptive fraud pattern changes. This paper introduces a Hybrid system combining Block chain and Artificial Intelligence (AI) to improve fraud detection in financial transactions. Block chain provides data immutability and integrity, whereas AI models (machine learning, deep learning) monitor patterns of transactions for detecting anomalies. We compare existing methods, introduce a new architecture that is a hybrid of smart contracts and AI-driven fraud detection, and discuss some of the challenges and research directions Experimental results prove greater accuracy and safety compared to existing practices