Data mining has transformed the banking industry and fraud detection by utilizing sophisticated algorithms and machine learning models to analyze massive transactional data volumes. It enables the identification of abnormalities and trends, such as unusual transaction patterns or simultaneous transactions from multiple locations, surpassing rule-based approaches. Additionally, data mining allows financial institutions to create detailed client profiles based on financial activities and demographics, aiding in the early detection of fraud by identifying outliers or suspicious behavior. This revolutionary tool minimizes customer and bank losses by leveraging the analysis of large data volumes to reveal intricate patterns.
