An arcing fault protection assembly in an electrical outlet, and a corresponding method determine whether arcing is present in circuits connected to the outlet. The assembly comprises a sensor, a broadband noise circuit, and a controller. The sensor detects a current and develops a corresponding sensor signal. The broadband noise circuit determines the presence of broadband noise in the sensor signal and produces a corresponding output signal. The controller processes the sensor signal and the output signal in a predetermined fashion to determine whether an arcing fault is present. The sensor, broadband noise circuit, and controller are mounted to the outlet receptacle or to an outlet box which houses the receptacle.