This document presents a study on an adaptive and real-time fraud detection algorithm aimed at enhancing security in online transactions, particularly focusing on credit card fraud. The algorithm utilizes an artificial neural network, a hidden Markov model, and one-time passwords, achieving a 100% fraud detection rate and 98% accuracy during tests with a synthesized dataset. The primary goal is to restore confidence among users in e-commerce amid growing concerns about security, particularly in Zimbabwe, where the adoption of online transactions is critical due to cash shortages.