What are the common use cases for anomaly detection?

Anomaly detection is used to identify unexpected patterns in data that deviate from normal behavior, enabling proactive responses across industries. A primary use case is security and fraud detection. In cybersecurity, systems monitor network traffic for unusual activity, such as sudden spikes in data transfer or repeated failed login attempts, which could indicate a breach. Financial institutions apply similar techniques to detect fraudulent transactions—for example, a credit card used in multiple countries within hours. Stock trading platforms analyze volume or price fluctuations to spot potential market manipulation, like abnormal trades preceding major announcements.

Another major application is system health monitoring and predictive maintenance. IT teams track server metrics like CPU usage or memory consumption to identify anomalies that signal hardware failures, resource leaks, or cyberattacks. In manufacturing, sensors on machinery collect vibration or temperature data; deviations from baseline patterns can predict equipment failures, allowing repairs before breakdowns occur. IoT devices, such as smart meters, use anomaly detection to flag irregular power consumption patterns caused by faults or tampering, ensuring operational efficiency.

Healthcare and retail also rely heavily on anomaly detection. Hospitals monitor patient vitals like heart rate or blood pressure to detect emergencies, such as arrhythmias, in real time. Medical imaging tools highlight anomalies in X-rays or MRIs for early diagnosis of tumors. Retailers analyze purchase patterns to identify fraudulent bulk orders or bot-driven inventory hoarding during sales events. Inventory systems alert managers to unexpected stock changes, helping address supply chain disruptions. These examples demonstrate how anomaly detection automates outlier identification in complex datasets, providing actionable insights for developers and engineers across domains.