diff --git a/.gitignore b/.gitignore
index 17858fd924..6bf28278f3 100644
--- a/.gitignore
+++ b/.gitignore
@@ -45,6 +45,7 @@ src/shippingservice/target/
 /src/featureflagservice/src/ffs_demo_pb.erl
 /src/featureflagservice/src/ffs_service_*.erl
 /src/featureflagservice/src/oteldemo_*.erl
+/src/frauddetectionservice/src/main/proto
 /src/frontend/pb/
 /src/frontend/protos/
 /src/paymentservice/demo.proto
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3f65f397ea..f2bcbfd131 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -55,6 +55,8 @@ release.
   ([#972](https://github.com/open-telemetry/opentelemetry-demo/pull/972))
 * Update frontendproxy's env for minimal
   ([#983](https://github.com/open-telemetry/opentelemetry-demo/pull/983))
+* [FraudDetectionService] Updated Kotlin version and OTel dependencies
+  ([#987](https://github.com/open-telemetry/opentelemetry-demo/pull/987))
 
 ## 1.4.0
 
diff --git a/src/frauddetectionservice/Dockerfile b/src/frauddetectionservice/Dockerfile
index 0e7e05ed63..491bd190b6 100644
--- a/src/frauddetectionservice/Dockerfile
+++ b/src/frauddetectionservice/Dockerfile
@@ -14,12 +14,11 @@ RUN gradle shadowJar
 
 FROM gcr.io/distroless/java17-debian11
 
-ARG version=1.23.0
+ARG version=1.28.0
 WORKDIR /usr/src/app/
 
 COPY --from=builder /usr/src/app/build/libs/frauddetectionservice-1.0-all.jar ./
 ADD https://github.com/open-telemetry/opentelemetry-java-instrumentation/releases/download/v$version/opentelemetry-javaagent.jar /app/opentelemetry-javaagent.jar
-# RUN chmod 644 /app/opentelemetry-javaagent.jar
 ENV JAVA_TOOL_OPTIONS=-javaagent:/app/opentelemetry-javaagent.jar
 
 ENTRYPOINT [ "java", "-jar", "frauddetectionservice-1.0-all.jar" ]
diff --git a/src/frauddetectionservice/README.md b/src/frauddetectionservice/README.md
index 14b3f31771..d618203669 100644
--- a/src/frauddetectionservice/README.md
+++ b/src/frauddetectionservice/README.md
@@ -8,7 +8,7 @@ suspected of fraud.
 To build the protos and the service binary, run from the repo root:
 
 ```sh
-protoc -I ../../pb/ ../../pb/demo.proto --kotlin_out=./src/main/kotlin
+cp -r ../../pb/ src/main/proto/
 ./gradlew shadowJar
 ```
 
diff --git a/src/frauddetectionservice/build.gradle.kts b/src/frauddetectionservice/build.gradle.kts
index edd1c1f233..ddaff6b40f 100644
--- a/src/frauddetectionservice/build.gradle.kts
+++ b/src/frauddetectionservice/build.gradle.kts
@@ -3,11 +3,11 @@ import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import com.google.protobuf.gradle.*
 
 plugins {
-    kotlin("jvm") version "1.7.20"
+    kotlin("jvm") version "1.8.21"
     application
     id("java")
     id("idea")
-    id("com.google.protobuf") version "0.9.1"
+    id("com.google.protobuf") version "0.9.4"
     id("com.github.johnrengelman.shadow") version "7.1.2"
 }
 
@@ -15,8 +15,8 @@ group = "io.opentelemetry"
 version = "1.0"
 
 
-val grpcVersion = "1.50.0"
-val protobufVersion = "3.16.1"
+val grpcVersion = "1.56.1"
+val protobufVersion = "3.23.4"
 
 
 repositories {
@@ -27,26 +27,26 @@ repositories {
 
 
 dependencies {
-    implementation("com.google.protobuf:protobuf-java:3.21.7")
+    implementation("com.google.protobuf:protobuf-java:${protobufVersion}")
     testImplementation(kotlin("test"))
     implementation(kotlin("script-runtime"))
-    implementation("org.apache.kafka:kafka-clients:3.3.1")
-    implementation("com.google.api.grpc:proto-google-common-protos:2.9.6")
+    implementation("org.apache.kafka:kafka-clients:3.5.0")
+    implementation("com.google.api.grpc:proto-google-common-protos:2.22.0")
     implementation("io.grpc:grpc-protobuf:${grpcVersion}")
     implementation("io.grpc:grpc-stub:${grpcVersion}")
     implementation("io.grpc:grpc-netty:${grpcVersion}")
     implementation("io.grpc:grpc-services:${grpcVersion}")
-    implementation("io.opentelemetry:opentelemetry-api:1.19.0")
-    implementation("io.opentelemetry:opentelemetry-sdk:1.19.0")
+    implementation("io.opentelemetry:opentelemetry-api:1.28.0")
+    implementation("io.opentelemetry:opentelemetry-sdk:1.28.0")
     implementation("io.opentelemetry:opentelemetry-extension-annotations:1.18.0")
-    implementation("org.apache.logging.log4j:log4j-core:2.19.0")
-    implementation("org.slf4j:slf4j-api:2.0.3")
-    implementation("com.google.protobuf:protobuf-kotlin:3.21.8")
+    implementation("org.apache.logging.log4j:log4j-core:2.20.0")
+    implementation("org.slf4j:slf4j-api:2.0.7")
+    implementation("com.google.protobuf:protobuf-kotlin:${protobufVersion}")
 
     if (JavaVersion.current().isJava9Compatible) {
         // Workaround for @javax.annotation.Generated
         // see: https://github.com/grpc/grpc-java/issues/3633
-        implementation("javax.annotation:javax.annotation-api:1.3.1")
+        implementation("javax.annotation:javax.annotation-api:1.3.2")
     }
 }
 
@@ -55,17 +55,17 @@ tasks.test {
 }
 
 tasks.withType<KotlinCompile> {
-    kotlinOptions.jvmTarget = "1.8"
+    kotlinOptions.jvmTarget = "17"
 }
 
 protobuf {
     protoc {
-        artifact = "com.google.protobuf:protoc:3.21.7"
+        artifact = "com.google.protobuf:protoc:${protobufVersion}"
     }
     plugins {
 
         id("grpc") {
-            artifact = "io.grpc:protoc-gen-grpc-java:1.50.2"
+            artifact = "io.grpc:protoc-gen-grpc-java:${grpcVersion}"
         }
     }
     generateProtoTasks {
diff --git a/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.jar b/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.jar
index 249e5832f0..033e24c4cd 100644
Binary files a/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.jar and b/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.jar differ
diff --git a/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.properties b/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.properties
index 60c76b3408..9f4197d5f4 100644
--- a/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.properties
+++ b/src/frauddetectionservice/gradle/wrapper/gradle-wrapper.properties
@@ -1,5 +1,7 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-7.4.2-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-8.2.1-bin.zip
+networkTimeout=10000
+validateDistributionUrl=true
 zipStoreBase=GRADLE_USER_HOME
-zipStorePath=wrapper/dists
\ No newline at end of file
+zipStorePath=wrapper/dists
diff --git a/src/frauddetectionservice/gradlew b/src/frauddetectionservice/gradlew
index 1b6c787337..fcb6fca147 100755
--- a/src/frauddetectionservice/gradlew
+++ b/src/frauddetectionservice/gradlew
@@ -55,7 +55,7 @@
 #       Darwin, MinGW, and NonStop.
 #
 #   (3) This script is generated from the Groovy template
-#       https://github.com/gradle/gradle/blob/master/subprojects/plugins/src/main/resources/org/gradle/api/internal/plugins/unixStartScript.txt
+#       https://github.com/gradle/gradle/blob/HEAD/subprojects/plugins/src/main/resources/org/gradle/api/internal/plugins/unixStartScript.txt
 #       within the Gradle project.
 #
 #       You can find Gradle at https://github.com/gradle/gradle/.
@@ -80,13 +80,10 @@ do
     esac
 done
 
-APP_HOME=$( cd "${APP_HOME:-./}" && pwd -P ) || exit
-
-APP_NAME="Gradle"
+# This is normally unused
+# shellcheck disable=SC2034
 APP_BASE_NAME=${0##*/}
-
-# Add default JVM options here. You can also use JAVA_OPTS and GRADLE_OPTS to pass JVM options to this script.
-DEFAULT_JVM_OPTS='"-Xmx64m" "-Xms64m"'
+APP_HOME=$( cd "${APP_HOME:-./}" && pwd -P ) || exit
 
 # Use the maximum available, or set MAX_FD != -1 to use that value.
 MAX_FD=maximum
@@ -133,22 +130,29 @@ location of your Java installation."
     fi
 else
     JAVACMD=java
-    which java >/dev/null 2>&1 || die "ERROR: JAVA_HOME is not set and no 'java' command could be found in your PATH.
+    if ! command -v java >/dev/null 2>&1
+    then
+        die "ERROR: JAVA_HOME is not set and no 'java' command could be found in your PATH.
 
 Please set the JAVA_HOME variable in your environment to match the
 location of your Java installation."
+    fi
 fi
 
 # Increase the maximum file descriptors if we can.
 if ! "$cygwin" && ! "$darwin" && ! "$nonstop" ; then
     case $MAX_FD in #(
       max*)
+        # In POSIX sh, ulimit -H is undefined. That's why the result is checked to see if it worked.
+        # shellcheck disable=SC3045
         MAX_FD=$( ulimit -H -n ) ||
             warn "Could not query maximum file descriptor limit"
     esac
     case $MAX_FD in  #(
       '' | soft) :;; #(
       *)
+        # In POSIX sh, ulimit -n is undefined. That's why the result is checked to see if it worked.
+        # shellcheck disable=SC3045
         ulimit -n "$MAX_FD" ||
             warn "Could not set maximum file descriptor limit to $MAX_FD"
     esac
@@ -193,6 +197,10 @@ if "$cygwin" || "$msys" ; then
     done
 fi
 
+
+# Add default JVM options here. You can also use JAVA_OPTS and GRADLE_OPTS to pass JVM options to this script.
+DEFAULT_JVM_OPTS='"-Xmx64m" "-Xms64m"'
+
 # Collect all arguments for the java command;
 #   * $DEFAULT_JVM_OPTS, $JAVA_OPTS, and $GRADLE_OPTS can contain fragments of
 #     shell script including quotes and variable substitutions, so put them in
@@ -205,6 +213,12 @@ set -- \
         org.gradle.wrapper.GradleWrapperMain \
         "$@"
 
+# Stop when "xargs" is not available.
+if ! command -v xargs >/dev/null 2>&1
+then
+    die "xargs is not available"
+fi
+
 # Use "xargs" to parse quoted args.
 #
 # With -n1 it outputs one arg per line, with the quotes and backslashes removed.
diff --git a/src/frauddetectionservice/gradlew.bat b/src/frauddetectionservice/gradlew.bat
index 107acd32c4..93e3f59f13 100644
--- a/src/frauddetectionservice/gradlew.bat
+++ b/src/frauddetectionservice/gradlew.bat
@@ -14,7 +14,7 @@
 @rem limitations under the License.
 @rem
 
-@if "%DEBUG%" == "" @echo off
+@if "%DEBUG%"=="" @echo off
 @rem ##########################################################################
 @rem
 @rem  Gradle startup script for Windows
@@ -25,7 +25,8 @@
 if "%OS%"=="Windows_NT" setlocal
 
 set DIRNAME=%~dp0
-if "%DIRNAME%" == "" set DIRNAME=.
+if "%DIRNAME%"=="" set DIRNAME=.
+@rem This is normally unused
 set APP_BASE_NAME=%~n0
 set APP_HOME=%DIRNAME%
 
@@ -40,7 +41,7 @@ if defined JAVA_HOME goto findJavaFromJavaHome
 
 set JAVA_EXE=java.exe
 %JAVA_EXE% -version >NUL 2>&1
-if "%ERRORLEVEL%" == "0" goto execute
+if %ERRORLEVEL% equ 0 goto execute
 
 echo.
 echo ERROR: JAVA_HOME is not set and no 'java' command could be found in your PATH.
@@ -75,13 +76,15 @@ set CLASSPATH=%APP_HOME%\gradle\wrapper\gradle-wrapper.jar
 
 :end
 @rem End local scope for the variables with windows NT shell
-if "%ERRORLEVEL%"=="0" goto mainEnd
+if %ERRORLEVEL% equ 0 goto mainEnd
 
 :fail
 rem Set variable GRADLE_EXIT_CONSOLE if you need the _script_ return code instead of
 rem the _cmd.exe /c_ return code!
-if  not "" == "%GRADLE_EXIT_CONSOLE%" exit 1
-exit /b 1
+set EXIT_CODE=%ERRORLEVEL%
+if %EXIT_CODE% equ 0 set EXIT_CODE=1
+if not ""=="%GRADLE_EXIT_CONSOLE%" exit %EXIT_CODE%
+exit /b %EXIT_CODE%
 
 :mainEnd
 if "%OS%"=="Windows_NT" endlocal
diff --git a/src/frauddetectionservice/src/main/kotlin/frauddetectionservice/main.kt b/src/frauddetectionservice/src/main/kotlin/frauddetectionservice/main.kt
index 6db2976f65..581134ad42 100644
--- a/src/frauddetectionservice/src/main/kotlin/frauddetectionservice/main.kt
+++ b/src/frauddetectionservice/src/main/kotlin/frauddetectionservice/main.kt
@@ -13,7 +13,7 @@ import kotlin.system.exitProcess
 const val topic = "orders"
 const val groupID = "frauddetectionservice"
 
-fun main(args: Array<String>) {
+fun main() {
     val props = Properties()
     props[KEY_DESERIALIZER_CLASS_CONFIG] = StringDeserializer::class.java.name
     props[VALUE_DESERIALIZER_CLASS_CONFIG] = ByteArrayDeserializer::class.java.name