Distributed ML systems in financial services: real-time fraud detection architecture

Boorugula, Ramya (2025) Distributed ML systems in financial services: real-time fraud detection architecture. World Journal of Advanced Research and Reviews, 26 (2). pp. 1818-1822. ISSN 2581-9615

Distributed machine learning systems for real-time fraud detection represent a critical advancement in financial services security infrastructure. These specialized architectures operate at unprecedented scale, processing millions of daily transactions with sub-second latency requirements while maintaining exceptional reliability standards. The evolution from traditional rule-based approaches to sophisticated machine learning implementations has significantly improved detection capabilities, with accuracy rates increasing dramatically while simultaneously reducing false positive rates. This significant performance improvement is achieved through a multi-layered architecture comprising tiered model execution frameworks, specialized feature stores for behavioral profiling, and optimized stream processing pipelines. Financial institutions face unique challenges in implementing these systems, including integration with legacy infrastructure, regulatory compliance requirements, and the need for continuous adaptation to evolving fraud patterns. Successful implementations balance technical sophistication with organizational innovation, employing cross-functional teams and hybrid governance models that enable rapid response to emerging threats while maintaining necessary controls. The technical and organizational architecture described provides a framework for understanding current best practices in financial fraud detection and indicates future directions as technologies like privacy-preserving computation continue to evolve.