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The rise of Web3 and Decentralized Finance (DeFi) has enabled borderless access to financial services empowered by smart contracts and blockchain technology. However, the ecosystem's trustless, permissionless, and borderless nature presents…

Cryptography and Security · Computer Science 2025-09-29 Hesam Sarkhosh , Uzma Maroof , Diogo Barradas

Despite the fact that cryptocurrencies themselves have experienced an astonishing rate of adoption over the last decade, cryptocurrency fraud detection is a heavily under-researched problem area. Of all fraudulent activity regarding…

Machine Learning · Computer Science 2022-05-11 Viswanath Chadalapaka , Kyle Chang , Gireesh Mahajan , Anuj Vasil

As the largest blockchain platform that supports smart contracts, Ethereum has developed with an incredible speed. Yet due to the anonymity of blockchain, the popularity of Ethereum has fostered the emergence of various illegal activities…

Computers and Society · Computer Science 2023-03-29 Qishuang Fu , Dan Lin , Yiyue Cao , Jiajing Wu

Financial institutions are required by regulation to report suspicious financial transactions related to money laundering. Therefore, they need to constantly monitor vast amounts of incoming and outgoing transactions. A particular challenge…

Machine Learning · Computer Science 2025-08-25 Bruno Deprez , Wei Wei , Wouter Verbeke , Bart Baesens , Kevin Mets , Tim Verdonck

With the escalating prevalence of malicious activities exploiting vulnerabilities in blockchain systems, there is an urgent requirement for robust attack detection mechanisms. To address this challenge, this paper presents a novel…

Encryption-based attacks have introduced significant challenges for detection mechanisms that rely on predefined signatures, heuristic indicators, or static rule-based classifications. Probabilistic Latent Encryption Mapping presents an…

Cryptography and Security · Computer Science 2025-03-26 Mohammad Eisa , Quentin Yardley , Rafael Witherspoon , Harriet Pendlebury , Clement Rutherford

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

Bitcoin has been subject to illicit activities more often than probably any other financial assets, due to the pseudo-anonymous nature of its transacting entities. An ideal detection model is expected to achieve all the three properties of…

Machine Learning · Computer Science 2022-09-27 Ling Cheng , Feida Zhu , Yong Wang , Huiwen Liu

One of the main tasks of cybersecurity is recognizing malicious interactions with an arbitrary system. Currently, the logging information from each interaction can be collected in almost unrestricted amounts, but identification of attacks…

Cryptography and Security · Computer Science 2019-07-02 Linara Adilova , Livin Natious , Siming Chen , Olivier Thonnard , Michael Kamp

The burgeoning e-Commerce sector requires advanced solutions for the detection of transaction fraud. With an increasing risk of financial information theft and account takeovers, deep learning methods have become integral to the embedding…

Machine Learning · Computer Science 2025-05-19 Bo Qu , Zhurong Wang , Minghao Gu , Daisuke Yagi , Yang Zhao , Yinan Shan , Frank Zahradnik

Behavioural cloning uses a dataset of demonstrations to learn a behavioural policy. To overcome various learning and policy adaptation problems, we propose to use latent space to index a demonstration dataset, instantly access similar…

Artificial Intelligence · Computer Science 2023-06-16 Federico Malato , Florian Leopold , Ville Hautamaki , Andrew Melnik

In the age of digital finance, detecting fraudulent transactions and money laundering is critical for financial institutions. This paper presents a scalable and efficient solution using Big Data tools and machine learning models. We utilize…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-04 Chen Liu , Hengyu Tang , Zhixiao Yang , Ke Zhou , Sangwhan Cha

Since the creation of Bitcoin, transaction tracking is one of the prominent means for following the movement of Bitcoins involved in illegal activities. Although every Bitcoin transaction is recorded in the blockchain database, which is…

Cryptography and Security · Computer Science 2019-12-06 Tin Tironsakkul , Manuel Maarek , Andrea Eross , Mike Just

Tax evasion, usually the largest component of an informal economy, is a persistent challenge over history with significant socio-economic implications. Many socio-economic studies investigate its dynamics, including influencing factors, the…

Information Retrieval · Computer Science 2025-09-03 Teddy Lazebnik , Labib Shami

Crime prediction is a widely studied research problem due to its importance in ensuring safety of city dwellers. Starting from statistical and classical machine learning based crime prediction methods, in recent years researchers have…

Machine Learning · Computer Science 2024-07-30 Rittik Basak Utsha , Muhtasim Noor Alif , Yeasir Rayhan , Tanzima Hashem , Mohammad Eunus Ali

We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and…

General Economics · Economics 2021-08-26 Lin William Cong , Xi Li , Ke Tang , Yang Yang

Money laundering (ML) is the behavior to conceal the source of money achieved by illegitimate activities, and always be a fast process involving frequent and chained transactions. How can we detect ML and fraudulent activity in large scale…

Computers and Society · Computer Science 2021-03-24 Xiaobing Sun , Jiabao Zhang , Qiming Zhao , Shenghua Liu , Jinglei Chen , Ruoyu Zhuang , Huawei Shen , Xueqi Cheng

Clustering analysis and Datamining methodologies were applied to the problem of identifying illegal and fraud transactions. The researchers independently developed model and software using data provided by a bank and using Rapidminer…

Databases · Computer Science 2015-03-12 M. Vadoodparast , A. Razak Hamdan , Hafiz

Cryptocurrency blockchains, beyond their primary role as distributed payment systems, are increasingly used to store and share arbitrary content, such as text messages and files. Although often non-financial, this hidden content can impact…

Machine Learning · Computer Science 2025-04-21 Charalampos Kleitsikas , Nikolaos Korfiatis , Stefanos Leonardos , Carmine Ventre

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