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We propose the application of a high-speed maximum likelihood clustering algorithm to detect temporal financial market states, using correlation matrices estimated from intraday market microstructure features. We first determine the ex-ante…

Trading and Market Microstructure · Quantitative Finance 2018-10-08 Dieter Hendricks , Tim Gebbie , Diane Wilcox

The article proposes an expert system for detection, and subsequent investigation, of groups of collaborating automobile insurance fraudsters. The system is described and examined in great detail, several technical difficulties in detecting…

Artificial Intelligence · Computer Science 2011-04-21 Lovro Šubelj , Štefan Furlan , Marko Bajec

We address the problem of sequentially selecting and observing processes from a given set to find the anomalies among them. The decision-maker observes one process at a time and obtains a noisy binary indicator of whether or not the…

Machine Learning · Computer Science 2021-05-14 Geethu Joseph , M. Cenk Gursoy , Pramod K. Varshney

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 many real-world settings, machine learning models need to identify user inputs that are out-of-domain (OOD) so as to avoid performing wrong actions. This work focuses on a challenging case of OOD detection, where no labels for in-domain…

Computation and Language · Computer Science 2022-03-23 Di Jin , Shuyang Gao , Seokhwan Kim , Yang Liu , Dilek Hakkani-Tur

Label noise in real-world datasets encodes wrong correlation patterns and impairs the generalization of deep neural networks (DNNs). It is critical to find efficient ways to detect corrupted patterns. Current methods primarily focus on…

Machine Learning · Computer Science 2022-06-22 Zhaowei Zhu , Zihao Dong , Yang Liu

A growing line of work shows how learned predictions can be used to break through worst-case barriers to improve the running time of an algorithm. However, incorporating predictions into data structures with strong theoretical guarantees…

Data Structures and Algorithms · Computer Science 2023-06-21 Samuel McCauley , Benjamin Moseley , Aidin Niaparast , Shikha Singh

Detecting anomalies has been a fundamental approach in detecting potentially fraudulent activities. Tasked with detection of illegal timber trade that threatens ecosystems and economies and association with other illegal activities, we…

Machine Learning · Computer Science 2021-04-05 Debanjan Datta , Sathappan Muthiah , Naren Ramakrishnan

The prospect of collusive agreements being stabilized via the use of pricing algorithms is widely discussed by antitrust experts and economists. However, the literature is often lacking the perspective of computer scientists, and seems to…

Computers and Society · Computer Science 2021-10-12 Florian E. Dorner

Reinforcement learning works best when the impact of the agent's actions on its environment can be perfectly simulated or fully appraised from available data. Some systems are however both hard to simulate and very sensitive to small…

Trading and Market Microstructure · Quantitative Finance 2025-01-30 Vincent Ragel , Damien Challet

Collusion in market pricing is a concept associated with human actions to raise market prices through artificially limited supply. Recently, the idea of algorithmic collusion was put forward, where the human action in the pricing process is…

Theoretical Economics · Economics 2025-01-29 Suzie Grondin , Arthur Charpentier , Philipp Ratz

Money launderers exploit the weaknesses in detection systems by purposefully placing their ill-gotten money into multiple accounts, at different banks. That money is then layered and moved around among mule accounts to obscure the origin…

Machine Learning · Computer Science 2025-01-03 Haseeb Tariq , Marwan Hassani

The art of systematic financial trading evolved with an array of approaches, ranging from simple strategies to complex algorithms all relying, primary, on aspects of time-series analysis. Recently, after visiting the trading floor of a…

Computer Vision and Pattern Recognition · Computer Science 2020-10-27 Naftali Cohen , Tucker Balch , Manuela Veloso

In temporal ordered clustering, given a single snapshot of a dynamic network in which nodes arrive at distinct time instants, we aim at partitioning its nodes into $K$ ordered clusters $\mathcal{C}_1 \prec \cdots \prec \mathcal{C}_K$ such…

Social and Information Networks · Computer Science 2020-08-10 Krzysztof Turowski , Jithin K. Sreedharan , Wojciech Szpankowski

As more decisions in our daily life become automated, the need to have machine learning algorithms that make fair decisions increases. In fair representation learning we are tasked with finding a suitable representation of the data in which…

Machine Learning · Computer Science 2022-03-17 Max Knobbout

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

With the rapid development of e-commerce, e-commerce platforms are facing an increasing number of fraud threats. Effectively identifying and preventing these fraudulent activities has become a critical research problem. Traditional fraud…

Machine Learning · Computer Science 2025-03-25 Xuan Li , Yuting Peng , Xiaoxuan Sun , Yifei Duan , Zhou Fang , Tengda Tang

Counterfactual learning from observational data involves learning a classifier on an entire population based on data that is observed conditioned on a selection policy. This work considers this problem in an active setting, where the…

Machine Learning · Statistics 2019-10-29 Songbai Yan , Kamalika Chaudhuri , Tara Javidi

The detection of frauds in credit card transactions is a major topic in financial research, of profound economic implications. While this has hitherto been tackled through data analysis techniques, the resemblances between this and other…

Social and Information Networks · Computer Science 2017-06-08 Massimiliano Zanin , Miguel Romance , Santiago Moral , Regino Criado

We study the human-in-the-loop customs inspection scenario, where an AI-assisted algorithm supports customs officers by recommending a set of imported goods to be inspected. If the inspected items are fraudulent, the officers can levy extra…

Machine Learning · Computer Science 2022-02-24 Sundong Kim , Tung-Duong Mai , Sungwon Han , Sungwon Park , Thi Nguyen Duc Khanh , Jaechan So , Karandeep Singh , Meeyoung Cha