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This paper systematically reviews advancements in deep learning (DL) techniques for financial fraud detection, a critical issue in the financial sector. Using the Kitchenham systematic literature review approach, 57 studies published…

Machine Learning · Computer Science 2025-07-31 Yisong Chen , Chuqing Zhao , Yixin Xu , Chuanhao Nie , Yixin Zhang

Learning-to-Defer (L2D) enables hybrid decision-making by routing inputs either to a predictor or to external experts. While promising, L2D is highly vulnerable to adversarial perturbations, which can not only flip predictions but also…

Machine Learning · Statistics 2026-05-29 Yannis Montreuil , Letian Yu , Axel Carlier , Lai Xing Ng , Wei Tsang Ooi

Financial crime is a large and growing problem, in some way touching almost every financial institution. Financial institutions are the front line in the war against financial crime and accordingly, must devote substantial human and…

Federated Learning (FL) is a data-minimization approach enabling collaborative model training across diverse clients with local data, avoiding direct data exchange. However, state-of-the-art FL solutions to identify fraudulent financial…

One of the main goals of financial institutions (FIs) today is combating fraud and financial crime. To this end, FIs use sophisticated machine-learning models trained using data collected from their customers. The output of machine learning…

Evaluating new techniques on realistic datasets plays a crucial role in the development of ML research and its broader adoption by practitioners. In recent years, there has been a significant increase of publicly available unstructured data…

Machine Learning · Computer Science 2022-11-29 Sérgio Jesus , José Pombal , Duarte Alves , André Cruz , Pedro Saleiro , Rita P. Ribeiro , João Gama , Pedro Bizarro

Protecting patient privacy remains a fundamental barrier to scaling machine learning across healthcare institutions, where centralizing sensitive data is often infeasible due to ethical, legal, and regulatory constraints. Federated learning…

Machine Learning · Computer Science 2026-03-24 Vagish Kumar , Syed Bahauddin Alam , Souvik Chakraborty

Balancing robust security with strong privacy guarantees is critical for Risk-Based Adaptive Authentication (RBA), particularly in decentralized settings. Federated Learning (FL) offers a promising solution by enabling collaborative risk…

Cryptography and Security · Computer Science 2025-09-23 Yaser Baseri , Abdelhakim Senhaji Hafid , Dimitrios Makrakis , Hamidreza Fereidouni

Fraud-related financial losses continue to rise, while regulatory, privacy, and data-sovereignty constraints increasingly limit the feasibility of centralized fraud detection systems. Federated Learning (FL) has emerged as a promising…

Financial crime detection using graph learning improves financial safety and efficiency. However, criminals may commit financial crimes across different institutions to avoid detection, which increases the difficulty of detection for…

Cryptography and Security · Computer Science 2023-10-13 Zhirui Pan , Guangzhong Wang , Zhaoning Li , Lifeng Chen , Yang Bian , Zhongyuan Lai

Credit card is one of the most extensive methods of instalment for both online and offline mode of payment for electronic transactions in recent times. credit cards invention has provided significant ease in electronic transactions.…

Machine Learning · Computer Science 2024-09-23 Sourav Verma , Joydip Dhar

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…

Fraud is a prevalent offence that extends beyond financial loss, causing psychological and physical harm to victims. The advancements in online communication technologies alowed for online fraud to thrive in this vast network, with…

Computation and Language · Computer Science 2025-04-17 Antonis Papasavva , Shane Johnson , Ed Lowther , Samantha Lundrigan , Enrico Mariconti , Anna Markovska , Nilufer Tuptuk

U.S. financial institutions deploying AI-based fraud detection face a fragmented compliance landscape spanning four regulatory frameworks -- OCC Bulletin 2011-12, SR 11-7, the CFPB AI circular, and FinCEN BSA/SAR requirements -- with no…

Machine Learning · Computer Science 2026-05-07 Mohammad Nasir Uddin

Financial fraud increasingly exploits institutional boundaries: laundering networks distribute transactions across multiple banks because no single institution can observe the full pattern. Federated Learning (FL) enables collaborative…

Cryptography and Security · Computer Science 2026-05-19 Prajwal Panth , Nishant Nigam

Financial datasets often suffer from bias that can lead to unfair decision-making in automated systems. In this work, we propose FairFinGAN, a WGAN-based framework designed to generate synthetic financial data while mitigating bias with…

Machine Learning · Computer Science 2026-03-06 Tai Le Quy , Dung Nguyen Tuan , Trung Nguyen Thanh , Duy Tran Cong , Huyen Giang Thi Thu , Frank Hopfgartner

Generative AI, particularly large language models (LLMs), is beginning to transform the financial industry by automating tasks and helping to make sense of complex financial information. One especially promising use case is the automatic…

Statistical Finance · Quantitative Finance 2025-11-11 Zonghan Wu , Congyuan Zou , Junlin Wang , Chenhan Wang , Hangjing Yang , Yilei Shao

With strict protections and regulations of data privacy and security, conventional machine learning based on centralized datasets is confronted with significant challenges, making artificial intelligence (AI) impractical in many…

Cryptography and Security · Computer Science 2020-05-25 Hongyu Li , Dan Meng , Hong Wang , Xiaolin Li

The large variety of digital payment choices available to consumers today has been a key driver of e-commerce transactions in the past decade. Unfortunately, this has also given rise to cybercriminals and fraudsters who are constantly…

Machine Learning · Computer Science 2021-12-09 Siddharth Vimal , Kanishka Kayathwal , Hardik Wadhwa , Gaurav Dhama

With the increase of credit card usage, the volume of credit card misuse also has significantly increased. As a result, financial organizations are working hard on developing and deploying credit card fraud detection methods, in order to…

Machine Learning · Computer Science 2019-12-09 Niloofar Yousefi , Marie Alaghband , Ivan Garibay