FRAUD DETECTION AND TRANSACTION MONITORING SYSTEMS

Abstract. Financial fraud is a general term that refers to actions carried out within the financial system with the aim of obtaining illegal financial gain, including deception, the provision of false information, or the concealment of suspicious transactions. Such activities not only cause financial losses to individuals and companies but also negatively affect financial institutions and the stability of the entire economic system. The expansion of the digital economy and rapid technological development have increased the complexity of fraud schemes, thereby requiring financial institutions to implement effective mechanisms for fraud detection and reporting. To address these challenges, banks and financial companies are increasingly adopting tools such as artificial intelligence, big data analytics, real-time monitoring systems, internal audit, and internal control mechanisms. Furthermore, when financial institutions detect fraudulent activities and submit official reports such as Suspicious Activity Reports (SARs) to specialized bodies like Financial Intelligence Units (FIUs), this process enables not only national regulatory authorities but also law enforcement agencies to monitor and prevent fraud-related risks. These processes are implemented within the framework of international standards and national legislation, contributing to effective risk management, customer protection, and the strengthening of trust in the financial system.