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This study critically examines the methodological rigor in credit card fraud detection research, revealing how fundamental evaluation flaws can overshadow algorithmic sophistication. Through deliberate experimentation with improper…

Machine Learning · Computer Science 2025-11-11 Khizar Hayat , Baptiste Magnier

We present a novel hybrid quantum-classical neural network architecture for fraud detection that integrates a classical Long Short-Term Memory (LSTM) network with a variational quantum circuit. By leveraging quantum phenomena such as…

Quantum Physics · Physics 2025-05-02 Rushikesh Ubale , Sujan K. K. , Sangram Deshpande , Gregory T. Byrd

With the exponential increase in video content, the need for accurate deception detection in human-centric video analysis has become paramount. This research focuses on the extraction and combination of various features to enhance the…

Computer Vision and Pattern Recognition · Computer Science 2024-07-09 Mohamed Bahaa , Mena Hany , Ehab E. Zakaria

The use of credit cards has recently increased, creating an essential need for credit card assessment methods to minimize potential risks. This study investigates the utilization of machine learning (ML) models for credit card default…

Machine Learning · Computer Science 2023-10-17 Anas Arram , Masri Ayob , Musatafa Abbas Abbood Albadr , Alaa Sulaiman , Dheeb Albashish

Machine learning models underpin many modern financial systems for use cases such as fraud detection and churn prediction. Most are based on supervised learning with hand-engineered features, which relies heavily on the availability of…

Machine Learning · Computer Science 2024-01-05 Piotr Skalski , David Sutton , Stuart Burrell , Iker Perez , Jason Wong

Credit default poses significant challenges to financial institutions and consumers, resulting in substantial financial losses and diminished trust. As such, credit default risk management has been a critical topic in the financial…

Computational Engineering, Finance, and Science · Computer Science 2026-01-21 Yuanhong Wu , Jingyan Xu , Wei Ye , Christina Schweikert , D. Frank Hsu

Countless research works of deep neural networks (DNNs) in the task of credit card fraud detection have focused on improving the accuracy of point predictions and mitigating unwanted biases by building different network architectures or…

As financial fraud becomes increasingly complex, effective detection methods are essential. Quantum Machine Learning (QML) introduces certain capabilities that may enhance both accuracy and efficiency in this area. This study examines how…

Quantum Physics · Physics 2026-02-12 Mansour El Alami , Nouhaila Innan , Muhammad Shafique , Mohamed Bennai

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

Card transaction fraud is a growing problem affecting card holders worldwide. Financial institutions increasingly rely upon data-driven methods for developing fraud detection systems, which are able to automatically detect and block…

Applications · Statistics 2020-05-07 Sebastiaan Höppner , Bart Baesens , Wouter Verbeke , Tim Verdonck

E-commerce platforms and payment solution providers face increasingly sophisticated fraud schemes, ranging from identity theft and account takeovers to complex money laundering operations that exploit the speed and anonymity of digital…

Artificial Intelligence · Computer Science 2026-01-12 Cooper Lin , Yanting Zhang , Maohao Ran , Wei Xue , Hongwei Fan , Yibo Xu , Zhenglin Wan , Sirui Han , Yike Guo , Jun Song

We develop quantum protocols for anomaly detection and apply them to the task of credit card fraud detection (FD). First, we establish classical benchmarks based on supervised and unsupervised machine learning methods, where average…

Quantum Physics · Physics 2022-08-03 Oleksandr Kyriienko , Einar B. Magnusson

Hidden Markov models (HMMs) and conditional random fields (CRFs) are two popular techniques for modeling sequential data. Inference algorithms designed over CRFs and HMMs allow estimation of the state sequence given the observations. In…

Artificial Intelligence · Computer Science 2012-02-20 Gungor Polatkan , Oncel Tuzel

The increasing complexity and volume of financial transactions pose significant challenges to traditional fraud detection systems. This technical report investigates and compares the efficacy of classical, quantum, and quantum-hybrid…

On electronic game platforms, different payment transactions have different levels of risk. Risk is generally higher for digital goods in e-commerce. However, it differs based on product and its popularity, the offer type (packaged game,…

Machine Learning · Computer Science 2017-09-21 Bokai Cao , Mia Mao , Siim Viidu , Philip S. Yu

Machine learning plays an essential role in preventing financial losses in the banking industry. Perhaps the most pertinent prediction task that can result in billions of dollars in losses each year is the assessment of credit risk (i.e.,…

Risk Management · Quantitative Finance 2021-01-01 Jillian M. Clements , Di Xu , Nooshin Yousefi , Dmitry Efimov

It is well known that fraudulent reviews cast doubt on the legitimacy and dependability of online purchases. The most recent development that leads customers towards darkness is the appearance of human reviews in computer-generated (CG)…

Computation and Language · Computer Science 2025-12-01 Shabbir Anees , Anshuman , Ayush Chaurasia , Prathmesh Bogar

The detection of change-points in heterogeneous sequences is a statistical challenge with many applications in fields such as finance, signal analysis and biology. A wide variety of literature exists for finding an ideal set of…

Applications · Statistics 2012-12-11 The Minh Luong , Vittorio Perduca , Gregory Nuel

Credit card fraud is a major cause of national concern in the Nigerian financial sector, affecting hundreds of transactions per second and impacting international ecommerce negatively. Despite the rapid spread and adoption of online…

Machine Learning · Computer Science 2024-07-15 Jennifer Onyeama

Online transaction fraud presents substantial challenges to businesses and consumers, risking significant financial losses. Conventional rule-based systems struggle to keep pace with evolving fraud tactics, leading to high false positive…

Risk Management · Quantitative Finance 2024-02-20 Catayoun Azarm , Erman Acar , Mickey van Zeelt