This paper delves into the exploration and application of advanced generative AI models, particularly Generative Adversarial Networks (GANs), in the field of fraud detection and prevention within the FinTech sector. As financial institutions are increasingly leveraging sophisticated technology to address the ever-growing threat of fraudulent activities, the integration of cutting-edge deep learning techniques into these systems is of paramount importance. The focus of this research lies in the development and implementation of deep learning models that are capable of analyzing real-time financial transactions, identifying anomalies, and detecting fraud with unprecedented accuracy. By employing adversarial networks, these models can learn from vast amounts of transaction data, simulating both normal and fraudulent behaviors, thereby enabling the detection of even the most subtle deviations from legitimate patterns.This paper introduces a comprehensive framework for incorporating advanced generative AI models into existing financial systems, offering a robust solution for fraud detection that not only enhances security but also significantly reduces the incidence of false positives. Traditional fraud detection systems often face limitations in balancing accuracy and speed, leading to the misidentification of legitimate transactions as fraudulent, which can negatively impact user experience and incur operational costs. By utilizing the unique capabilities of GANs, which consist of a generator network that simulates fraudulent activities and a discriminator network that distinguishes between legitimate and fraudulent transactions, the proposed framework achieves a more efficient and precise identification of suspicious activities in real time. This adversarial learning process improves the system’s ability to generalize across a wide range of financial behaviors, adapting dynamically to new and evolving fraud tactics.The integration of these generative models into FinTech ecosystems also offers significant advantages in compliance with evolving regulatory standards. Financial institutions are subject to stringent regulatory requirements aimed at mitigating fraud and safeguarding consumer assets. The proposed framework ensures that institutions remain compliant by enhancing the precision and robustness of their fraud detection capabilities, thereby aligning with regulations designed to prevent money laundering, financial crimes, and terrorist financing. Furthermore, the ability of GANs to learn from imbalanced data, where legitimate transactions vastly outnumber fraudulent ones, enhances the detection capabilities even when fraudulent patterns are rare or previously unseen.A key aspect of this research is the real-time deployment of the proposed models, which is critical in financial environments where timely detection of fraudulent activities can prevent substantial losses. The models presented in this paper are designed to operate within milliseconds, ensuring that transactions flagged as suspicious can be addressed immediately without disrupting the flow of legitimate financial activities. This efficiency is achieved by leveraging advanced deep learning architectures that are optimized for high-speed processing and can be integrated seamlessly with existing financial infrastructure, including cloud-based and on-premise systems.Another central challenge addressed by this paper is the trade-off between model complexity and interpretability. While advanced generative models like GANs offer superior performance in detecting fraud, their black-box nature often raises concerns regarding transparency, particularly in sectors as highly regulated as finance. The framework introduced here incorporates mechanisms for enhancing model interpretability, including feature attribution techniques and post-hoc analysis, which provide insight into the decision-making process of the AI models. This transparency is critical for satisfying regulatory scrutiny and ensuring that financial institutions can explain their automated fraud detection processes when required.This research also explores the scalability of generative AI models in fraud detection, particularly as financial systems continue to grow in complexity and volume. With millions of transactions occurring every second globally, fraud detection systems must scale efficiently to handle this massive influx of data. The paper presents a detailed analysis of the scalability of the proposed framework, discussing its adaptability to various transaction volumes, different types of financial services, and diverse user profiles. By deploying GAN-based models that can scale in parallel across distributed systems, financial institutions can ensure robust fraud detection without compromising on speed or accuracy.Moreover, the paper highlights the potential of adversarial training in detecting new types of fraud. Financial fraud is an ever-evolving challenge, with fraudsters continuously developing new tactics to bypass detection systems. Generative AI models, particularly GANs, offer a proactive approach to addressing this issue by simulating possible fraudulent strategies in a controlled environment, which can then be used to train the detection system. This ability to generate synthetic fraudulent data allows the detection models to remain ahead of emerging threats, improving the overall resilience of the financial system.