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This study evaluates the applicability of Kolmogorov-Arnold Networks (KAN) in fraud detection, finding that their effectiveness is context-dependent. We propose a quick decision rule using Principal Component Analysis (PCA) to assess the…

Machine Learning · Computer Science 2024-09-05 Yang Lu , Felix Zhan

Digital systems find it challenging to keep up with cybersecurity threats. The daily emergence of more than 560,000 new malware strains poses significant hazards to the digital ecosystem. The traditional malware detection methods fail to…

Cryptography and Security · Computer Science 2025-04-28 Abrar Fahim , Shamik Dey , Md. Nurul Absur , Md Kamrul Siam , Md. Tahmidul Huque , Jafreen Jafor Godhuli

We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and…

General Economics · Economics 2021-08-26 Lin William Cong , Xi Li , Ke Tang , Yang Yang

The detection of malicious websites has become a critical issue in cybersecurity. Therefore, this paper offers a comprehensive review of data-driven methods for detecting malicious websites. Traditional approaches and their limitations are…

Cryptography and Security · Computer Science 2023-05-17 Zeyuan Hu , Ziang Yuan

The Non-Fungible-Token (NFT) market has experienced explosive growth in recent years. According to DappRadar, the total transaction volume on OpenSea, the largest NFT marketplace, reached 34.7 billion dollars in February 2023. However, the…

Trading and Market Microstructure · Quantitative Finance 2023-08-04 Mingxiao Song , Yunsong Liu , Agam Shah , Sudheer Chava

Banking fraud causes billion-dollar losses for banks worldwide. In fraud detection, graphs help understand complex transaction patterns and discovering new fraud schemes. This work explores graph patterns in a real-world transaction dataset…

Social and Information Networks · Computer Science 2021-08-11 Xavier Fontes , David Aparício , Maria Inês Silva , Beatriz Malveiro , João Tiago Ascensão , Pedro Bizarro

Despite the fact that cryptocurrencies themselves have experienced an astonishing rate of adoption over the last decade, cryptocurrency fraud detection is a heavily under-researched problem area. Of all fraudulent activity regarding…

Machine Learning · Computer Science 2022-05-11 Viswanath Chadalapaka , Kyle Chang , Gireesh Mahajan , Anuj Vasil

Time series often contain outliers and level shifts or structural changes. These unexpected events are of the utmost importance in fraud detection, as they may pinpoint suspicious transactions. The presence of such unusual events can easily…

Computation · Statistics 2021-01-13 Peter J. Rousseeuw , Domenico Perrotta , Marco Riani , Mia Hubert

Topic modeling is admittedly a convenient way to monitor markets trend. Conventionally, Latent Dirichlet Allocation, LDA, is considered a must-do model to gain this type of information. By given the merit of deducing keyword with token…

Computation and Language · Computer Science 2023-09-19 Ching-Hsun Tseng , Shin-Jye Lee , Po-Wei Cheng , Chien Lee , Chih-Chieh Hung

Rapid growth of digital transactions has led to a surge in fraudulent activities, challenging traditional detection methods in the financial sector. To tackle this problem, we introduce a specialised federated learning framework that…

The popularity of e-commerce has given rise to fake advertisements that can expose users to financial and data risks while damaging the reputation of these e-commerce platforms. For these reasons, detecting and removing such fake…

Machine Learning · Computer Science 2025-01-22 Duy Nguyen , Trung T. Nguyen , Cuong V. Nguyen

This study introduces the Quantum Federated Neural Network for Financial Fraud Detection (QFNN-FFD), a cutting-edge framework merging Quantum Machine Learning (QML) and quantum computing with Federated Learning (FL) for financial fraud…

Quantum Physics · Physics 2025-09-03 Nouhaila Innan , Alberto Marchisio , Mohamed Bennai , Muhammad Shafique

Detecting concept drift is a well known problem that affects production systems. However, two important issues that are frequently not addressed in the literature are 1) the detection of drift when the labels are not immediately available;…

Machine Learning · Computer Science 2019-08-13 Fábio Pinto , Marco O. P. Sampaio , Pedro Bizarro

Money laundering is a financial crime that obscures the origin of illicit funds, necessitating the development and enforcement of anti-money laundering (AML) policies by governments and organizations. The proliferation of mobile payment…

Machine Learning · Computer Science 2025-03-14 Jiani Fan , Lwin Khin Shar , Ruichen Zhang , Ziyao Liu , Wenzhuo Yang , Dusit Niyato , Bomin Mao , Kwok-Yan Lam

We demonstrate the application of an algorithmic trading strategy based upon the recently developed dynamic mode decomposition (DMD) on portfolios of financial data. The method is capable of characterizing complex dynamical systems, in this…

Computational Finance · Quantitative Finance 2015-08-20 Jordan Mann , J. Nathan Kutz

Fraud detection is a difficult problem that can benefit from predictive modeling. However, the verification of a prediction is challenging; for a single insurance policy, the model only provides a prediction score. We present a case study…

Machine Learning · Computer Science 2018-06-20 Dennis Collaris , Leo M. Vink , Jarke J. van Wijk

Identity fraud detection is of great importance in many real-world scenarios such as the financial industry. However, few studies addressed this problem before. In this paper, we focus on identity fraud detection in loan applications and…

Computation and Language · Computer Science 2019-08-20 Weikang Wang , Jiajun Zhang , Qian Li , Chengqing Zong , Zhifei Li

Fraud detection is a challenging task due to the changing nature of fraud patterns over time and the limited availability of fraud examples to learn such sophisticated patterns. Thus, fraud detection with the aid of smart versions of…

Machine Learning · Computer Science 2022-09-07 Mary Isangediok , Kelum Gajamannage

State estimation estimates the system condition in real-time and provides a base case for other energy management system (EMS) applications including real-time contingency analysis and security-constrained economic dispatch. Recent work in…

Systems and Control · Computer Science 2019-12-02 Xingpeng Li , Kory W. Hedman

Search-based testing is widely used to find bugs in models of complex Cyber-Physical Systems. Latest research efforts have improved this approach by casting it as a falsification procedure of formally specified temporal properties,…

Logic in Computer Science · Computer Science 2017-10-03 Simone Silvetti , Alberto Policriti , Luca Bortolussi
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