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The rise of cryptocurrencies like Bitcoin, which enable transactions with a degree of pseudonymity, has led to a surge in various illicit activities, including ransomware payments and transactions on darknet markets. These illegal…

Cryptography and Security · Computer Science 2023-06-16 Poupak Azad , Baris Coskunuzer , Murat Kantarcioglu , Cuneyt Gurcan Akcora

Anti-money laundering (AML) systems are important for protecting the global economy. However, conventional rule-based methods rely on domain knowledge, leading to suboptimal accuracy and a lack of scalability. Graph neural networks (GNNs)…

Machine Learning · Computer Science 2026-03-26 Chung-Hoo Poon , James Kwok , Calvin Chow , Jang-Hyeon Choi

This study proposes a credit card fraud detection method based on Heterogeneous Graph Neural Network (HGNN) to address fraud in complex transaction networks. Unlike traditional machine learning methods that rely solely on numerical features…

Machine Learning · Computer Science 2025-04-14 Qiuwu Sha , Tengda Tang , Xinyu Du , Jie Liu , Yixian Wang , Yuan Sheng

The entry of new technological infrastructures into the financial markets poses serious concerns about the misuse of the economic system for illicit purposes, such as money laundering and financing of terrorism. Although there are cases in…

Theoretical Economics · Economics 2024-05-30 Chiara Ferri

Money laundering is the process that intends to legalize the income derived from illicit activities, thus facilitating their entry into the monetary flow of the economy without jeopardizing their source. It is crucial to identify such…

Social and Information Networks · Computer Science 2025-07-10 Zhihua Tian , Yuan Ding , Wenjie Qu , Xiang Yu , Enchao Gong , Jian Liu , Kui Ren

Money laundering is the process where criminals use financial services to move massive amounts of illegal money to untraceable destinations and integrate them into legitimate financial systems. It is very crucial to identify such activities…

Artificial Intelligence · Computer Science 2023-02-27 Md. Rezaul Karim , Felix Hermsen , Sisay Adugna Chala , Paola de Perthuis , Avikarsha Mandal

Technological advancements in cryptocurrency markets have increased accessibility for investors, but concurrently exposed them to the risks of market manipulations. Existing fraud detection mechanisms typically rely on machine learning…

Machine Learning · Computer Science 2026-04-28 Lidia Losavio , Luca Persia , Madan Sathe , Dimosthenis Pasadakis

In this paper, we focused on using deep learning methods for detecting money laundering in financial transaction networks, in order to demonstrate that it can be used as a complement or instead of the more commonly used rule-based systems…

Machine Learning · Computer Science 2025-09-25 Mashkhal Abdalwahid Sidiq , Yimamu Kirubel Wondaferew

Blockchain technology, a foundational distributed ledger system, enables secure and transparent multi-party transactions. Despite its advantages, blockchain networks are susceptible to anomalies and frauds, posing significant risks to their…

Cryptography and Security · Computer Science 2024-02-20 Joerg Osterrieder , Stephen Chan , Jeffrey Chu , Yuanyuan Zhang , Branka Hadji Misheva , Codruta Mare

We study the deployment performance of machine learning based enforcement systems used in cryptocurrency anti money laundering (AML). Using forward looking and rolling evaluations on Bitcoin transaction data, we show that strong static…

Machine Learning · Computer Science 2026-04-27 Khem Raj Bhatt , Krishna Sharma

Bitcoin (BTC) is probably the most transparent payment network in the world, thanks to the full history of transactions available to the public. Though, Bitcoin is not a fully anonymous environment, rather a pseudonymous one, accounting for…

Cryptography and Security · Computer Science 2021-03-18 Maurantonio Caprolu , Matteo Pontecorvi , Matteo Signorini , Carlos Segarra , Roberto Di Pietro

Cryptocurrencies are widely used, yet current methods for analyzing transactions often rely on opaque, black-box models. While these models may achieve high performance, their outputs are usually difficult to interpret and adapt, making it…

Cryptography and Security · Computer Science 2025-09-05 Yuchen Lei , Yuexin Xiang , Qin Wang , Rafael Dowsley , Tsz Hon Yuen , Kim-Kwang Raymond Choo , Jiangshan Yu

In recent years, the unprecedented growth in digital payments fueled consequential changes in fraud and financial crimes. In this new landscape, traditional fraud detection approaches such as rule-based engines have largely become…

Machine Learning · Computer Science 2021-03-03 E. Kurshan , H. Shen , H. Yu

As the availability of financial services online continues to grow, the incidence of fraud has surged correspondingly. Fraudsters continually seek new and innovative ways to circumvent the detection algorithms in place. Traditionally, fraud…

Machine Learning · Computer Science 2024-11-25 Prashank Kadam

The rise of digital ecosystems has exposed the financial sector to evolving abuse and criminal tactics that share operational knowledge and techniques both within and across different environments (fiat-based, crypto-assets, etc.).…

Machine Learning · Computer Science 2025-09-17 Francesco Zola , Jon Ander Medina , Andrea Venturi , Amaia Gil , Raul Orduna

Rapid and massive adoption of mobile/ online payment services has brought new challenges to the service providers as well as regulators in safeguarding the proper uses such services/ systems. In this paper, we leverage recent advances in…

Social and Information Networks · Computer Science 2019-06-14 Da Sun Handason Tam , Wing Cheong Lau , Bin Hu , Qiu Fang Ying , Dah Ming Chiu , Hong Liu

Graph convolutional networks (GCNs) is a class of artificial neural networks for processing data that can be represented as graphs. Since financial transactions can naturally be constructed as graphs, GCNs are widely applied in the…

Machine Learning · Computer Science 2023-03-30 Song Li , Jiandong Zhou , Chong MO , Jin LI , Geoffrey K. F. Tso , Yuxing Tian

While transactions with cryptocurrencies such as Ethereum are becoming more prevalent, fraud and other criminal transactions are not uncommon. Graph analysis algorithms and machine learning techniques detect suspicious transactions that…

Machine Learning · Computer Science 2022-07-05 Hiroki Kanezashi , Toyotaro Suzumura , Xin Liu , Takahiro Hirofuchi

The popularity and amazing attractiveness of cryptocurrencies, and especially Bitcoin, absorb countless enthusiasts daily. Although Blockchain technology prevents fraudulent behavior, it cannot detect fraud on its own. There are always…

Cryptography and Security · Computer Science 2021-07-05 Mohammad Javad Shayegan , Hamid Reza Sabor

With the popularity of blockchain technology, the financial security issues of blockchain transaction networks have become increasingly serious. Phishing scam detection methods will protect possible victims and build a healthier blockchain…

Machine Learning · Computer Science 2021-08-20 Dunjie Zhang , Jinyin Chen