With the popularity of the Internet and the development of science and technology, cyberspace has become an important part of people′s daily life and work, but criminal acts such as online fraud are also rampant, which seriously threatens the network security and the safety of citizens’ property. This paper deeply discusses the intelligent identification method and legal regulation measures of fraud in cyberspace, aiming at building a safer network environment. As an important means to prevent online fraud, intelligent identification technology integrates cutting-edge technologies in artificial intelligence, machine learning, image processing and other fields. Through deep learning and big data analysis, this technology can monitor users’ network behavior, transaction records and communication content in real time, and accurately identify potential fraud. In terms of legal regulation, China has taken a series of measures to combat online fraud, including improving the relevant provisions of the Criminal Law, formulating judicial interpretations, strengthening law enforcement cooperation and raising public awareness of prevention. Nevertheless, there are still some problems in the existing legal regulations, such as general provisions, unclear sentencing standards, great difficulty in transnational cooperation and insufficient public awareness of prevention. Therefore, this paper suggests refining legal provisions, improving conviction and sentencing standards, strengthening international cooperation, enhancing legal publicity and education, and establishing and improving electronic evidence collection and preservation mechanism, in order to provide strong support for building a safer network environment.