A fault detection system that that prevents a recloser from reclosing if a fault is determined to be internal to a transformer, where the recloser is configured to perform a reclosing operation in response to detecting overcurrent. The recloser includes a sensor, such as a light sensor, directed towards the transformer and detecting a fault event. If the recloser detects overcurrent, but the sensor does not detect the fault event, it is assumed that the fault is internal to the transformer and the recloser is prevented from reclosing.