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Custom officials across the world encounter huge volumes of transactions. With increased connectivity and globalization, the customs transactions continue to grow every year. Associated with customs transactions is the customs fraud - the…

Machine Learning · Computer Science 2023-08-22 Karandeep Singh , Yu-Che Tsai , Cheng-Te Li , Meeyoung Cha , Shou-De Lin

Systematic financial trading strategies account for over 80% of trade volume in equities and a large chunk of the foreign exchange market. In spite of the availability of data from multiple markets, current approaches in trading rely mainly…

Machine Learning · Computer Science 2020-07-01 Adriano Koshiyama , Sebastian Flennerhag , Stefano B. Blumberg , Nick Firoozye , Philip Treleaven

Payment card fraud causes multibillion dollar losses for banks and merchants worldwide, often fueling complex criminal activities. To address this, many real-time fraud detection systems use tree-based models, demanding complex feature…

Machine Learning · Computer Science 2020-06-18 Bernardo Branco , Pedro Abreu , Ana Sofia Gomes , Mariana S. C. Almeida , João Tiago Ascensão , Pedro Bizarro

With the rapid growth of e-commerce, online payment fraud has become increasingly complex, posing serious threats to financial security and consumer trust. Traditional detection methods often struggle to capture the intricate relational…

Computational Engineering, Finance, and Science · Computer Science 2025-09-15 RuiHan Luo , Nanxi Wang , Xiaotong Zhu

Detecting fraudulent transactions is an essential component to control risk in e-commerce marketplaces. Apart from rule-based and machine learning filters that are already deployed in production, we want to enable efficient real-time…

Machine Learning · Computer Science 2022-08-25 Mingxuan Lu , Zhichao Han , Susie Xi Rao , Zitao Zhang , Yang Zhao , Yinan Shan , Ramesh Raghunathan , Ce Zhang , Jiawei Jiang

The detection of anomaly subgraphs naturally appears in various real-life tasks, yet label noise seriously interferes with the result. As a motivation for our work, we focus on inaccurate supervision and use prior knowledge to reduce…

Data Structures and Algorithms · Computer Science 2021-08-18 Xinyue Zhang , Nannan Wu , Zixu Zhen , Wenjun Wang

In recent years, the unprecedented growth in digital payments fueled consequential changes in fraud and financial crimes. In this new landscape, traditional fraud detection approaches such as rule-based engines have largely become…

Machine Learning · Computer Science 2021-03-03 E. Kurshan , H. Shen , H. Yu

This paper presents a dynamic, real-time approach to detecting anomalous blockchain transactions. The proposed tool, BlockGPT, generates tracing representations of blockchain activity and trains from scratch a large language model to act as…

Cryptography and Security · Computer Science 2023-05-02 Yu Gai , Liyi Zhou , Kaihua Qin , Dawn Song , Arthur Gervais

With the rapid evolution of Web3.0, cryptocurrency has become a cornerstone of decentralized finance. While these digital assets enable efficient and borderless financial transactions, their pseudonymous nature has also attracted malicious…

Cryptography and Security · Computer Science 2024-11-01 Zheng Che , Meng Shen , Zhehui Tan , Hanbiao Du , Liehuang Zhu , Wei Wang , Ting Chen , Qinglin Zhao , Yong Xie

Many real-world and artificial systems and processes can be represented as graphs. Some examples of such systems include social networks, financial transactions, supply chains, and molecular structures. In many of these cases, one needs to…

Machine Learning · Computer Science 2025-03-21 Ashkan Dehghan , Paweł Prałat , François Théberge

Modern financial systems generate vast quantities of transactional and event-level data that encode rich economic signals. This paper presents PRAGMA, a family of foundation models for multi-source banking event sequences. Our approach…

Circular trading is a form of tax evasion in Goods and Services Tax where a group of fraudulent taxpayers (traders) aims to mask illegal transactions by superimposing several fictitious transactions (where no value is added to the goods or…

Machine Learning · Computer Science 2022-08-17 Priya Mehta , Sanat Bhargava , M. Ravi Kumar , K. Sandeep Kumar , Ch. Sobhan Babu

Model extraction aims to create a functionally similar copy from a machine learning as a service (MLaaS) API with minimal overhead, typically for illicit profit or as a precursor to further attacks, posing a significant threat to the MLaaS…

Cryptography and Security · Computer Science 2024-09-25 Hongyu Zhu , Wentao Hu , Sichu Liang , Fangqi Li , Wenwen Wang , Shilin Wang

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

Graph-based fraud detection on text-attributed graphs (TAGs) requires jointly modeling rich textual semantics and relational dependencies. However, existing LLM-enhanced GNN approaches are constrained by predefined prompting and decoupled…

Computation and Language · Computer Science 2026-02-02 Yuan Li , Jun Hu , Bryan Hooi , Bingsheng He , Cheng Chen

XML transactions are used in many information systems to store data and interact with other systems. Abnormal transactions, the result of either an on-going cyber attack or the actions of a benign user, can potentially harm the interacting…

Cryptography and Security · Computer Science 2013-06-06 Eitan Menahem , Alon Schclar , Lior Rokach , Yuval Elovici

The dark face of digital commerce generalization is the increase of fraud attempts. To prevent any type of attacks, state-of-the-art fraud detection systems are now embedding Machine Learning (ML) modules. The conception of such modules is…

Applications of blockchain technologies got a lot of attention in recent years. They exceed beyond exchanging value and being a substitute for fiat money and traditional banking system. Nevertheless, being able to exchange value on a…

Cryptography and Security · Computer Science 2019-08-22 Michal Ostapowicz , Kamil Żbikowski

We present TransactionGPT (TGPT), a foundation model for consumer transaction data within one of the world's largest payment networks. TGPT is designed to understand and generate transaction trajectories while simultaneously supporting a…

Time series often contain outliers and level shifts or structural changes. These unexpected events are of the utmost importance in fraud detection, as they may pinpoint suspicious transactions. The presence of such unusual events can easily…

Computation · Statistics 2021-01-13 Peter J. Rousseeuw , Domenico Perrotta , Marco Riani , Mia Hubert