The problem of random vibration based robust fault detection under variable and non-measurable Environmental and Operating Conditions (EOCs) is considered, and a novel stochastic Functional Model (FM) based method is postulated. It is a data-driven method, of the Statistical Time Series (STS) type, and aims at overcoming the well known drawbacks of available methods by achieving high detection performance while eliminating their draw-backs, such as the need for measurable EOCs, for measurement of a high number of vibration signals for proper training, for subjective judgement in selecting method parameters, and for high dimensional non-convex optimization procedures. The method is based on representing the system dynamics, under any set of EOCs, in a proper feature space, within which the healthy dynamics are represented by a proper healthy subspace constructed via a Functional Model. Fault detection is then based upon determining, at a certain risk level, whether or not the current dynamics resides within the healthy subspace. The method's assessment is achieved via simulation results with a case study pertaining to fault detection in a railway vehicle suspension under variable payload, with high detection performance, clearly exceeding that of an alternative Principal Component Analysis (PCA) based method. (C) 2019 Elsevier Ltd. All rights reserved.