The rapid advancement of technology has brought forth new opportunities and challenges in the realm of fraud detection. Traditional methods are increasingly inadequate against sophisticated modern fraudulent activities. This research paper delves into the integration of Artificial Intelligence (AI) and blockchain technology to enhance fraud detection mechanisms. Leveraging the predictive capabilities of AI and the immutable nature of blockchain, we propose a robust framework for identifying and preventing fraud. Case studies demonstrating successful implementations in various industries are included to illustrate the effectiveness of this integrated approach. Our findings suggest that the synergy between AI and blockchain significantly reduces fraudulent activities, enhances data security, and fosters increased trust among stakeholders.