Intelligent Financial Fraud Detection Practices: An Investigation

Financial fraud is an issue with far reaching consequences in the finance industry, government, corporate sectors, and for ordinary consumers. Increasing dependence on new technologies such as cloud and mobile computing in recent years has compounded the problem. Traditional methods of detection involve extensive use of auditing, where a trained individual manually observes reports or transactions in an attempt to discover fraudulent behaviour. This method is not only time consuming, expensive and inaccurate, but in the age of big data it is also impractical. Not surprisingly, financial institutions have turned to automated processes using statistical and computational methods. This paper presents a comprehensive investigation on financial fraud detection practices using such data mining methods, with a particular focus on computational intelligence-based techniques. Classification of the practices based on key aspects such as detection algorithm used, fraud type investigated, and success rate have been covered. Issues and challenges associated with the current practices and potential future direction of research have also been identified.Comment: Proceedings of the 10th International Conference on Security and Privacy in Communication Networks (SecureComm 2014

Personalized Fuzzy Text Search Using Interest Prediction and Word Vectorization

In this paper we study the personalized text search problem. The keyword based search method in conventional algorithms has a low efficiency in understanding users' intention since the semantic meaning, user profile, user interests are not always considered. Firstly, we propose a novel text search algorithm using a inverse filtering mechanism that is very efficient for label based item search. Secondly, we adopt the Bayesian network to implement the user interest prediction for an improved personalized search. According to user input, it searches the related items using keyword information, predicted user interest. Thirdly, the word vectorization is used to discover potential targets according to the semantic meaning. Experimental results show that the proposed search engine has an improved efficiency and accuracy and it can operate on embedded devices with very limited computational resources