PaySafe Al: Intelligent Fraud Detection for UPI Transactions using Machine Learning

In the financial world, it is impoartant to have a sound understand of systems against fraud, as they help detect activities such as anomalous and malicious transactions, through the analysis of activity engagement. Decision Tree are the recent form of deep learning models which, in more recent years, have shown advanced capability in the identification of fraudulent transactions, however, sensitivity and accuracy when implemented in real time systems remain an issue. In this research, we provide a new idea of fraud detection of UPI transactions that utilizes a Decision Tree based sequence modeling framework. The model focuses on normalization sets and typical cardholder activities to effectively learn how to detect anomalies in UPI transactions. It then analyzes the sequences of a person’s activities and adds on the probabilities, to then classify if the transaction is fraudulent or not. Several measures are established, however, in order to aid in minimizing false positives, because the aim is to ensure valid transactions are still processed. The experimental results support the proposed fraud detection system’s potential usefulness in monitoring actual UPI transactions and it also shows how it outperforms current systems in related studies. Our model facilitates the UPI transaction environment equally and addresses the fine balance in detection efficiency, accuracy and transaction speed by proposing the integration of deep learning techniques.