Systems and methods for mitigating fraudulent transactions

An improved system for mitigation of fraudulent transactions comprising:

• a server communicatively coupled to a user device by a network, wherein the server comprises a non-transitory memory storing computer-readable instructions and a processor, the execution of the computer-readable instructions causing the server to:
• train a dynamic artificial intelligence dynamic classification algorithm using at least one of customer data, population data, whitelisted items, and whitelisted vendors;
• receive a proposed transaction from a merchant device communicatively coupled to the server;
• apply the trained dynamic artificial intelligence classification algorithm to the proposed transaction to determine if the proposed transactions appears to be fraudulent;
• generate a user verification request when the proposed transaction appears to be fraudulent;
• transmit the user verification request to a user computing device communicatively coupled to the server;
• receive an approval or a refusal of the proposed transaction based on the user verification request;
• process the proposed transaction based on the received approval or refusal of the proposed transaction;
• and
• update one or more parameters of the dynamic artificial intelligence classification algorithm responsive to receiving an approval or refusal of the proposed transaction based on the user verification request.