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Credit cards play an exploding role in modern economies. Its popularity and ubiquity have created a fertile ground for fraud, assisted by the cross boarder reach and instantaneous confirmation. While transactions are growing, the fraud…

Cryptography and Security · Computer Science 2022-08-24 Gayan K. Kulatilleke

With the proliferation of various online and mobile payment systems, credit card fraud has emerged as a significant threat to financial security. This study focuses on innovative applications of the latest Transformer models for more robust…

Machine Learning · Computer Science 2024-11-13 Chang Yu , Yongshun Xu , Jin Cao , Ye Zhang , Yinxin Jin , Mengran Zhu

Machine learning has opened up new tools for financial fraud detection. Using a sample of annotated transactions, a machine learning classification algorithm learns to detect frauds. With growing credit card transaction volumes and rising…

Machine Learning · Computer Science 2022-08-26 Gayan K. Kulatilleke

Financial crime costs U.S. institutions over $32 billion each year. Although AI tools for fraud detection have become more advanced, their use in real-world systems still faces a major obstacle: many of these models operate as black boxes…

Machine Learning · Computer Science 2026-04-17 Mohammad Nasir Uddin , Md Munna Aziz

Fraudulent activity in the financial industry costs billions annually. Detecting fraud, therefore, is an essential yet technically challenging task that requires carefully analyzing large volumes of data. While machine learning (ML)…

Statistical Finance · Quantitative Finance 2025-07-04 Linh Nguyen , Marcel Boersma , Erman Acar

The UK anti-fraud charity Fraud Advisory Panel (FAP) in their review of 2016 estimates business costs of fraud at 144 billion, and its individual counterpart at 9.7 billion. Banking, insurance, manufacturing, and government are the most…

Machine Learning · Computer Science 2022-05-11 Tuan Tran

As online fraud becomes more sophisticated and pervasive, traditional fraud detection methods are struggling to keep pace with the evolving tactics employed by fraudsters. This paper explores the transformative role of machine learning in…

Machine Learning · Computer Science 2024-10-29 Md Kamrul Hasan Chy

Fraudulent activities on digital banking services are becoming more intricate by the day, challenging existing defenses. While older rule driven methods struggle to keep pace, even precision focused algorithms fall short when new scams are…

Cryptography and Security · Computer Science 2026-01-21 Karthikeyan V. R. , Premnath S. , Kavinraaj S. , J. Sangeetha

There is a growing demand for explainable, transparent, and data-driven models within the domain of fraud detection. Decisions made by fraud detection models need to be explainable in the event of a customer dispute. Additionally, the…

Machine Learning · Computer Science 2023-12-04 Samantha Visbeek , Erman Acar , Floris den Hengst

Practitioners and researchers trying to strike a balance between accuracy and transparency center Explainable Artificial Intelligence (XAI) at the junction of finance. This paper offers a thorough overview of the changing scene of XAI…

General Finance · Quantitative Finance 2025-11-12 Md Talha Mohsin , Nabid Bin Nasim

Current trends in Machine Learning prefer explainability even when it comes at the cost of performance. Therefore, explainable AI methods are particularly important in the field of Fraud Detection. This work investigates the applicability…

Risk Management · Quantitative Finance 2024-10-30 Boris Wolfson , Erman Acar

For the highly imbalanced credit card fraud detection problem, most existing methods either use data augmentation methods or conventional machine learning models, while neural network-based anomaly detection approaches are lacking.…

Machine Learning · Computer Science 2022-06-30 Tungyu Wu , Youting Wang

People now see social media sites as their sole source of information due to their popularity. The Majority of people get their news through social media. At the same time, fake news has grown exponentially on social media platforms in…

Artificial Intelligence · Computer Science 2022-07-26 Athira A B , S D Madhu Kumar , Anu Mary Chacko

Financial statement fraud detection is an important problem with a number of design aspects to consider. Issues such as (i) problem representation, (ii) feature selection, and (iii) choice of performance metrics all influence the perceived…

Cryptography and Security · Computer Science 2015-11-27 J. West , Maumita Bhattacharya

With an increase in financial accounting fraud in the current economic scenario experienced, financial accounting fraud detection has become an emerging topics of great importance for academics, research and industries. Financial fraud is a…

Other Computer Science · Computer Science 2013-09-05 H. Lookman Sithic , T. Balasubramanian

The automatic detection of frauds in banking transactions has been recently studied as a way to help the analysts finding fraudulent operations. Due to the availability of a human feedback, this task has been studied in the framework of…

Machine Learning · Computer Science 2020-04-24 Christelle Marfaing , Alexandre Garcia

Trust between humans and artificial intelligence(AI) is an issue which has implications in many fields of human computer interaction. The current issue with artificial intelligence is a lack of transparency into its decision making, and…

Human-Computer Interaction · Computer Science 2021-08-11 Arnav Kartikeya

Fraud detection is a difficult problem that can benefit from predictive modeling. However, the verification of a prediction is challenging; for a single insurance policy, the model only provides a prediction score. We present a case study…

Machine Learning · Computer Science 2018-06-20 Dennis Collaris , Leo M. Vink , Jarke J. van Wijk

Financial forecasting increasingly uses large neural network models, but their opacity raises challenges for trust and regulatory compliance. We present several approaches to explainable and reliable AI in finance. \emph{First}, we describe…

Machine Learning · Computer Science 2025-10-31 Albi Isufaj , Pablo Mollá , Helmut Prendinger

The rapid development of artificial intelligence methods contributes to their wide applications for forecasting various financial risks in recent years. This study introduces a novel explainable case-based reasoning (CBR) approach without a…

Computational Finance · Quantitative Finance 2021-07-20 Wei Li , Florentina Paraschiv , Georgios Sermpinis