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A novel network-based approach is introduced to analyze banking systems, focusing on two main themes: identifying influential nodes within global banking networks using Bank for International Settlements data and developing an algorithm to…

Social and Information Networks · Computer Science 2025-03-12 Anthony Bonato , Juan Chavez Palan , Adam Szava

Detecting anomalies has become increasingly critical to the financial service industry. Anomalous events are often indicative of illegal activities such as fraud, identity theft, network intrusion, account takeover, and money laundering.…

Machine Learning · Computer Science 2021-01-06 Hongda Shen , Eren Kursun

Anomaly detection is the process of identifying abnormal instances or events in data sets which deviate from the norm significantly. In this study, we propose a signatures based machine learning algorithm to detect rare or unexpected items…

Computational Finance · Quantitative Finance 2022-02-09 Erdinc Akyildirim , Matteo Gambara , Josef Teichmann , Syang Zhou

This paper proposes an algorithm based on a staged sliding window Transformer architecture to detect abnormal behaviors in the microstructure of the foreign exchange market, focusing on high-frequency EUR/USD trading data. The method…

Machine Learning · Computer Science 2025-04-02 Qiuliuyang Bao , Jiawei Wang , Hao Gong , Yiwei Zhang , Xiaojun Guo , Hanrui Feng

This paper is motivated by the task of detecting anomalies in networks of financial transactions, with accounts as nodes and a directed weighted edge between two nodes denoting a money transfer. The weight of the edge is the transaction…

Applications · Statistics 2019-05-28 Andrew Elliott , Mihai Cucuringu , Milton Martinez Luaces , Paul Reidy , Gesine Reinert

Payment card fraud causes multibillion dollar losses for banks and merchants worldwide, often fueling complex criminal activities. To address this, many real-time fraud detection systems use tree-based models, demanding complex feature…

Machine Learning · Computer Science 2020-06-18 Bernardo Branco , Pedro Abreu , Ana Sofia Gomes , Mariana S. C. Almeida , João Tiago Ascensão , Pedro Bizarro

This research explores the opportunities for the application of network analytic techniques to prevent money laundering. We worked on real world data by analyzing the central database of a factoring company, mainly operating in Italy, over…

Social and Information Networks · Computer Science 2021-05-13 A. Fronzetti Colladon , E. Remondi

Credit card fraud is an ongoing problem for almost all industries in the world, and it raises millions of dollars to the global economy each year. Therefore, there is a number of research either completed or proceeding in order to detect…

Machine Learning · Computer Science 2020-07-30 Yusuf Yazici

How can we spot money laundering in large-scale graph-like accounting datasets? How to identify the most suspicious period in a time-evolving accounting graph? What kind of accounts and events should practitioners prioritize under time…

Social and Information Networks · Computer Science 2020-11-03 Meng-Chieh Lee , Yue Zhao , Aluna Wang , Pierre Jinghong Liang , Leman Akoglu , Vincent S. Tseng , Christos Faloutsos

In financial field, a robust software system is of vital importance to ensure the smooth operation of financial transactions. However, many financial corporations still depend on operators to identify and eliminate the system failures when…

Machine Learning · Computer Science 2019-12-20 Jingwen Wang , Jingxin Liu , Juntao Pu , Qinghong Yang , Zhongchen Miao , Jian Gao , You Song

Anomaly detection is the task of detecting data which differs from the normal behaviour of a system in a given context. In order to approach this problem, data-driven models can be learned to predict current or future observations.…

Machine Learning · Computer Science 2020-10-30 Benedikt Eiteneuer , Oliver Niggemann

Many business applications involve adversarial relationships in which both sides adapt their strategies to optimize their opposing benefits. One of the key characteristics of these applications is the wide range of strategies that an…

Artificial Intelligence · Computer Science 2020-11-04 Daniel Borrajo , Manuela Veloso , Sameena Shah

Financial institutions and businesses face an ongoing challenge from fraudulent transactions, prompting the need for effective detection methods. Detecting credit card fraud is crucial for identifying and preventing unauthorized…

Machine Learning · Computer Science 2024-02-23 Md. Alamin Talukder , Rakib Hossen , Md Ashraf Uddin , Mohammed Nasir Uddin , Uzzal Kumar Acharjee

The growing cybersecurity threats make it essential to use high-quality data to train Machine Learning (ML) models for network traffic analysis, without noisy or missing data. By selecting the most relevant features for cyber-attack…

Cryptography and Security · Computer Science 2024-07-09 João Vitorino , Miguel Silva , Eva Maia , Isabel Praça

With online payment platforms being ubiquitous and important, fraud transaction detection has become the key for such platforms, to ensure user account safety and platform security. In this work, we present a novel method for detecting…

Machine Learning · Computer Science 2020-03-30 Longfei Li , Ziqi Liu , Chaochao Chen , Ya-Lin Zhang , Jun Zhou , Xiaolong Li

Modern financial electronic exchanges are an exciting and fast-paced marketplace where billions of dollars change hands every day. They are also rife with manipulation and fraud. Detecting such activity is a major undertaking, which has…

Machine Learning · Computer Science 2023-09-04 Timothy DeLise

Anti-Money Laundering (AML) is a crucial task in ensuring the integrity of financial systems. One keychallenge in AML is identifying high-risk groups based on their behavior. Unsupervised learning, particularly clustering, is a promising…

Statistical Finance · Quantitative Finance 2024-03-05 Ahmed N. Bakry , Almohammady S. Alsharkawy , Mohamed S. Farag , Kamal R. Raslan

Tool-calling LLM agents can read private data, invoke external services, and trigger real-world actions, creating a security problem at the point of tool execution. We identify a denial-feedback leakage pattern, which we term causality…

Cryptography and Security · Computer Science 2026-04-07 Mohammad Hossein Chinaei

Money laundering has become one of the most relevant criminal activities in modern societies, as it causes massive financial losses for governments, banks and other institutions. Detecting such activities is among the top priorities when it…

Since the inception of Bitcoin in 2009, the market of cryptocurrencies has grown beyond initial expectations as daily trades exceed $10 billion. As industries become automated, the need for an automated fraud detector becomes very apparent.…

Machine Learning · Computer Science 2022-07-26 Eran Kaufman , Andrey Iaremenko