Blockchain-Based Fraud Detection and Prevention System Enhanced with AI

Abstract

Traditional centralized systems often fail to prevent fraud and ensure data integrity, especially as cyber threats grow more complex. This paper proposes a blockchain-based framework enhanced with artificial intelligence to address these limitations. Blockchain provides secure, tamper-proof storage and smart contract–based access control, while AI enables realtime anomaly detection by analyzing behavioral patterns. The system is built using Ethereum smart contracts and machine learning models, with a modular architecture connecting frontend, backend, and AI components. Evaluation shows over 92% accuracy in fraud detection, efficient response times, and reliable audit trails. The approach proves scalable and suitable for sensitive sectors such as healthcare and finance, offering a secure, intelligent, and decentralized solution for modern data protection