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Identifying market abuse activity from data on investors' trading activity is very challenging both for the data volume and for the low signal to noise ratio. Here we propose two complementary unsupervised machine learning methods to…

Statistical Finance · Quantitative Finance 2022-12-13 Piero Mazzarisi , Adele Ravagnani , Paola Deriu , Fabrizio Lillo , Francesca Medda , Antonio Russo

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 study addresses the problem of dynamic anomaly detection in accounting transactions and proposes a real-time detection method based on a Transformer to tackle the challenges of hidden abnormal behaviors and high timeliness requirements…

Machine Learning · Computer Science 2025-11-18 Yi Wang , Ruoyi Fang , Anzhuo Xie , Hanrui Feng , Jianlin Lai

Reconstruction error-based neural architectures constitute a classical deep learning approach to anomaly detection which has shown great performances. It consists in training an Autoencoder to reconstruct a set of examples deemed to…

Machine Learning · Computer Science 2024-06-06 Fabrizio Angiulli , Fabio Fassetti , Luca Ferragina

Unsupervised anomaly detection (AD) is a major topic in the field of Cyber-Physical Production Systems (CPPSs). A closely related concern is dimensionality reduction (DR) which is: 1) often used as a preprocessing step in an AD solution, 2)…

Machine Learning · Computer Science 2020-10-29 Benedikt Eiteneuer , Nemanja Hranisavljevic , Oliver Niggemann

Anomaly detection in supercomputers is a very difficult problem due to the big scale of the systems and the high number of components. The current state of the art for automated anomaly detection employs Machine Learning methods or…

Machine Learning · Computer Science 2020-07-30 Andrea Borghesi , Andrea Bartolini , Michele Lombardi , Michela Milano , Luca Benini

Building a scalable machine learning system for unsupervised anomaly detection via representation learning is highly desirable. One of the prevalent methods is using a reconstruction error from variational autoencoder (VAE) via maximizing…

Machine Learning · Computer Science 2020-05-08 Seonho Park , George Adosoglou , Panos M. Pardalos

In a context of a continuous digitalisation of processes, organisations must deal with the challenge of detecting anomalies that can reveal suspicious activities upon an increasing volume of data. To pursue this goal, audit engagements are…

Computational Engineering, Finance, and Science · Computer Science 2024-05-24 A. Herreros-Martínez , R. Magdalena-Benedicto , J. Vila-Francés , A. J. Serrano-López , S. Pérez-Díaz

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

Anomaly detection is referred to as a process in which the aim is to detect data points that follow a different pattern from the majority of data points. Anomaly detection methods suffer from several well-known challenges that hinder their…

Machine Learning · Computer Science 2021-08-31 Kasra Babaei , Zhi Yuan Chen , Tomas Maul

The monitoring and management of high-volume feature-rich traffic in large networks offers significant challenges in storage, transmission and computational costs. The predominant approach to reducing these costs is based on performing a…

Machine Learning · Computer Science 2016-06-16 Tingshan Huang , Harish Sethu , Nagarajan Kandasamy

Anomaly detection using dimensionality reduction has been an essential technique for monitoring multidimensional data. Although deep learning-based methods have been well studied for their remarkable detection performance, their…

Machine Learning · Statistics 2018-12-24 Yasuhiro Ikeda , Kengo Tajiri , Yuusuke Nakano , Keishiro Watanabe , Keisuke Ishibashi

Insider trading is one of the numerous white collar crimes that can contribute to the instability of the economy. Traditionally, the detection of illegal insider trades has been a human-driven process. In this paper, we collect the insider…

Social and Information Networks · Computer Science 2017-02-21 Adarsh Kulkarni , Priya Mani , Carlotta Domeniconi

We focus on a specific use case in anomaly detection where the distribution of normal samples is supported by a lower-dimensional manifold. Here, regularized autoencoders provide a popular approach by learning the identity mapping on the…

Computer Vision and Pattern Recognition · Computer Science 2024-05-14 Alexander Bauer , Shinichi Nakajima , Klaus-Robert Müller

Anomaly detection is a method for discovering unusual and suspicious behavior. In many real-world scenarios, the examined events can be directly linked to the actions of an adversary, such as attacks on computer networks or frauds in…

Machine Learning · Computer Science 2020-04-23 Olga Petrova , Karel Durkota , Galina Alperovich , Karel Horak , Michal Najman , Branislav Bosansky , Viliam Lisy

This study investigates privacy leakage in dimensionality reduction methods through a novel machine learning-based reconstruction attack. Employing an informed adversary threat model, we develop a neural network capable of reconstructing…

Cryptography and Security · Computer Science 2025-06-03 Chayadon Lumbut , Donlapark Ponnoprat

Anomaly detection is critical for the secure and reliable operation of industrial control systems. As our reliance on such complex cyber-physical systems grows, it becomes paramount to have automated methods for detecting anomalies,…

Machine Learning · Computer Science 2024-05-10 Mayra Macas , Chunming Wu , Walter Fuertes

A Distributed Denial-of-service (DDoS) attack is a malicious attempt to disrupt the regular traffic of a targeted server, service, or network by sending a flood of traffic to overwhelm the target or its surrounding infrastructure. As…

Cryptography and Security · Computer Science 2023-05-17 Yuanyuan Wei , Julian Jang-Jaccard , Fariza Sabrina , Wen Xu , Seyit Camtepe , Aeryn Dunmore

Detecting anomalies in high-dimensional, time-dependent simulation data is challenging due to complex spatial and temporal dynamics. We study reconstruction-based anomaly detection for ensemble data from parameterized K\'arm\'an vortex…

Machine Learning · Computer Science 2026-01-14 Hamid Gadirov , Martijn Westra , Steffen Frey

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
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