540 research outputs found
Advanced analytical methods for fraud detection: a systematic literature review
The developments of the digital era demand new ways of producing goods and rendering
services. This fast-paced evolution in the companies implies a new approach from the
auditors, who must keep up with the constant transformation. With the dynamic
dimensions of data, it is important to seize the opportunity to add value to the companies.
The need to apply more robust methods to detect fraud is evident.
In this thesis the use of advanced analytical methods for fraud detection will be
investigated, through the analysis of the existent literature on this topic.
Both a systematic review of the literature and a bibliometric approach will be applied to
the most appropriate database to measure the scientific production and current trends.
This study intends to contribute to the academic research that have been conducted, in
order to centralize the existing information on this topic
A Comprehensive Survey of Data Mining-based Fraud Detection Research
This survey paper categorises, compares, and summarises from almost all
published technical and review articles in automated fraud detection within the
last 10 years. It defines the professional fraudster, formalises the main types
and subtypes of known fraud, and presents the nature of data evidence collected
within affected industries. Within the business context of mining the data to
achieve higher cost savings, this research presents methods and techniques
together with their problems. Compared to all related reviews on fraud
detection, this survey covers much more technical articles and is the only one,
to the best of our knowledge, which proposes alternative data and solutions
from related domains.Comment: 14 page
HF-SCA: Hands-Free Strong Customer Authentication Based on a Memory-Guided Attention Mechanisms
Strong customer authentication (SCA) is a requirement of the European Union Revised Directive on Payment Services (PSD2) which ensures that electronic payments are performed with multifactor authentication. While increasing the security of electronic payments, the SCA impacted seriously on the shopping carts abandonment: an Italian bank computed that 22% of online purchases in the first semester of 2021 did not complete because of problems with the SCA. Luckily, the PSD2 allows the use of transaction risk analysis tool to exempt the SCA process. In this paper, we propose an unsupervised novel combination of existing machine learning techniques able to determine if a purchase is typical or not for a specific customer, so that in the case of a typical purchase the SCA could be exempted. We modified a well-known architecture (U-net) by replacing convolutional blocks with squeeze-and-excitation blocks. After that, a memory network was added in a latent space and an attention mechanism was introduced in the decoding side of the network. The proposed solution was able to detect nontypical purchases by creating temporal correlations between transactions. The network achieved 97.7% of AUC score over a well-known dataset retrieved online. By using this approach, we found that 98% of purchases could be executed by securely exempting the SCA, while shortening the customer’s journey and providing an elevated user experience. As an additional validation, we developed an Alexa skill for Amazon smart glasses which allows a user to shop and pay online by merely using vocal interaction, leaving the hands free to perform other activities, for example driving a car
Rule Learning from Time-Dependent Data Applied to Fraud Detection
International audienceIn financial environment, fraud detection is a challenging problem with tremendous financial impacts where data is highly unbalanced, sequential and timestamped. An additional constraint comes from the fact that common machine learning methods cannot be used alone for fraud detection, as every decision made in order to label a transaction as fraudulent needs to be explainable and the complete model understandable.The use of a symbolic language, such as understandable classification rules, is therefore preferred or even required
Credit Card Fraud Detection Using Asexual Reproduction Optimization
As the number of credit card users has increased, detecting fraud in this
domain has become a vital issue. Previous literature has applied various
supervised and unsupervised machine learning methods to find an effective fraud
detection system. However, some of these methods require an enormous amount of
time to achieve reasonable accuracy. In this paper, an Asexual Reproduction
Optimization (ARO) approach was employed, which is a supervised method to
detect credit card fraud. ARO refers to a kind of production in which one
parent produces some offspring. By applying this method and sampling just from
the majority class, the effectiveness of the classification is increased. A
comparison to Artificial Immune Systems (AIS), which is one of the best methods
implemented on current datasets, has shown that the proposed method is able to
remarkably reduce the required training time and at the same time increase the
recall that is important in fraud detection problems. The obtained results show
that ARO achieves the best cost in a short time, and consequently, it can be
considered a real-time fraud detection system
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Learning Transactional Behavioral Representations for Credit Card Fraud Detection
Credit card fraud detection is a challenging task since fraudulent actions are hidden in massive legitimate behaviors. This work aims to learn a new representation for each transaction record based on the historical transactions of users in order to capture fraudulent patterns accurately and, thus, automatically detect a fraudulent transaction. We propose a novel model by improving long short-term memory with a time-aware gate that can capture the behavioral changes caused by consecutive transactions of users. A current-historical attention module is designed to build up connections between current and historical transactional behaviors, which enables the model to capture behavioral periodicity. An interaction module is designed to learn comprehensive and rational behavioral representations. To validate the effectiveness of the learned behavioral representations, experiments are conducted on a large real-world transaction dataset provided to us by a financial company in China, as well as a public dataset. Experimental results and the visualization of the learned representations illustrate that our method delivers a clear distinction between legitimate behaviors and fraudulent ones, and achieves better fraud detection performance compared with the state-of-the-art methods.10.13039/501100012166-National Key Research and Development Program of China (Grant Number: 2018YFB2100801);
10.13039/501100003399-Science and Technology Commission of Shanghai Municipality (Grant Number: 22511105500);
Bengbu University 2021 High-Level Scientific Research and Cultivation Project (Grant Number: 2021pyxm04)
Unveiling the frontiers of deep learning: innovations shaping diverse domains
Deep learning (DL) enables the development of computer models that are
capable of learning, visualizing, optimizing, refining, and predicting data. In
recent years, DL has been applied in a range of fields, including audio-visual
data processing, agriculture, transportation prediction, natural language,
biomedicine, disaster management, bioinformatics, drug design, genomics, face
recognition, and ecology. To explore the current state of deep learning, it is
necessary to investigate the latest developments and applications of deep
learning in these disciplines. However, the literature is lacking in exploring
the applications of deep learning in all potential sectors. This paper thus
extensively investigates the potential applications of deep learning across all
major fields of study as well as the associated benefits and challenges. As
evidenced in the literature, DL exhibits accuracy in prediction and analysis,
makes it a powerful computational tool, and has the ability to articulate
itself and optimize, making it effective in processing data with no prior
training. Given its independence from training data, deep learning necessitates
massive amounts of data for effective analysis and processing, much like data
volume. To handle the challenge of compiling huge amounts of medical,
scientific, healthcare, and environmental data for use in deep learning, gated
architectures like LSTMs and GRUs can be utilized. For multimodal learning,
shared neurons in the neural network for all activities and specialized neurons
for particular tasks are necessary.Comment: 64 pages, 3 figures, 3 table
A Survey on Explainable Anomaly Detection
In the past two decades, most research on anomaly detection has focused on
improving the accuracy of the detection, while largely ignoring the
explainability of the corresponding methods and thus leaving the explanation of
outcomes to practitioners. As anomaly detection algorithms are increasingly
used in safety-critical domains, providing explanations for the high-stakes
decisions made in those domains has become an ethical and regulatory
requirement. Therefore, this work provides a comprehensive and structured
survey on state-of-the-art explainable anomaly detection techniques. We propose
a taxonomy based on the main aspects that characterize each explainable anomaly
detection technique, aiming to help practitioners and researchers find the
explainable anomaly detection method that best suits their needs.Comment: Paper accepted by the ACM Transactions on Knowledge Discovery from
Data (TKDD) for publication (preprint version
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