Financial Fraud Detection

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Overview

Financial fraud detection studies how to identify deceptive activity in payments, banking, insurance, markets, and digital assets, often when fraud is rare and its patterns change over time. Common approaches include gradient-boosted models and anomaly detection on transaction features, graph neural networks for relationships among accounts and transactions, and temporal or sequence models; synthetic data, federated learning, and language models are also used. Methods are evaluated on benchmarks such as credit-card transaction datasets, cryptocurrency graphs, and simulated anti-money-laundering networks, with attention to precision-recall and the number of alerts investigators can handle. A central challenge is whether reported gains hold under chronological, leakage-safe evaluation and real operational constraints, where delayed or incomplete labels, distribution shift, privacy, and false alarms all affect deployment.

Latest papers

CardsList

137 papers20 papers in the last four weeks, up 33% on the four weeks before. 0.1% of all new papers.

  1. TRIDENT-Seq: Profile-Matched Prefix-Future Contrast for Label-Efficient Payment Risk Modeling

    Oct 27, 2026Weiyu Han, Haoyu Jiang, Jie Sheng +7Financial Fraud DetectionContrastive Learning

    Ant International · East China Normal University · Tongji University +1

  2. LLM-Enhanced Heterogeneous Graph Learning with Business Semantics for Financial Fraud Detection

    Oct 26, 2026Yixuan Chen, Hongyu Zhan, Jie Sheng +5Financial Fraud DetectionHeterogeneous GNNs

    HKUST-GZ & Jilin University · The Hong Kong University of Science and Technology (Guangzhou) · Ant International +1

  3. MINT: Mitigating Structural Inconsistency via Attentive Message Passing for Financial Anomaly Detection

    Oct 26, 2026Yin-Ju Wu, Bi-Cheng Yan, Berlin ChenGraph-Based Anomaly DetectionFinancial Fraud Detection

    National Taiwan Normal University Taipei, Taiwan

  4. FraudSociety: A Generative Agent-Based Society for the Financial-Fraud Economy

    Oct 24, 2026Keyang Chen, Mingxuan Jiang, Zeping Li +10Financial Fraud DetectionAgent-Based Modeling

    Fudan University, Shanghai, China · University of Illinois Urbana-Champaign, Urbana, IL, USA

  5. Can Loan Processors and Underwriters Spot AI-Edited Statements? An Empirical Study

    Oct 22, 2026Simiao Ren, Xingyu Shen, Tommy Duong +1Text Forgery DetectionFinancial Fraud Detection

    Scam.ai (Reality Inc.)

  6. Leveraging Time-Series Foundation Models for Financial Crime Detection

    Oct 21, 2026Danae Natalie Savvidi, H. Çağrı Bilgi, Kubilay Atasu +1Financial Fraud DetectionAnti-Money Laundering Detection

    Delft University of Technology, Delft, The Netherlands

  7. Securing Agentic Commerce Through Behavior-Aware Fraud Detection and Cybersecurity for Trusted AI-Agent Payment Authorization

    Oct 20, 2026Kayode L. OgunsusiAI Agent SecurityAgentic Commerce

    Credit and Fraud Risk, American Express, Phoenix, Arizona, USA

  8. RGH-GNN : Risk-Gated Heterogeneous Graph Neural Network for Financial Fraud Detection

    Oct 19, 2026Mythreyee Hari, Subin Sahayam, Vegesna S M SrinivasavarmaFinancial Fraud DetectionGraph Neural Networks

    Department of Computer Science and Engineering, Shiv Nadar University, Chennai - 603110, Tamil Nadu, India

  9. CARTA: Self-Supervised Reusable Transaction Embeddings via Heterogeneous Tokenization and Cross-Attention

    Oct 17, 2026Shreyas K. Chandrahas, Jose Munoz, Satish Babu BellapuRepresentation LearningTabular Representation Learning

    Visa Inc. Foster City, CA, USA · Massachusetts Institute of Technology Cambridge, MA, USA

  10. Money-Mule Detection as a Relational Learning Problem: A Study on the RBIH NFPC Dataset

    Oct 15, 2026Owais Ahmad, Anirudh DeodharFinancial Fraud DetectionAnti-Money Laundering Detection

    Applied Research, Quantiphi, Marlborough, MA 01752, USA

  11. Privacy-Preserving GNN Inference on Financial Transaction Graphs via Homomorphic Encryption

    Oct 13, 2026H. Çağrı Bilgi, Kemal Mutluergil, Ceren Yıldırım +2Anti-Money Laundering DetectionPrivacy-Preserving ML

    Sabancı University, Istanbul, Türkiye

  12. FRACTION: Fraud Explanation Generation via Agentic Graph Context Navigation

    Oct 13, 2026Cecelia Soh, Jun Hu, Yuan Li +6Faithfulness of Language Model ExplanationsLLMs for Graph Learning

    National University of Singapore · Hefei University of Technology · ByteDance Inc. +1

  13. Enhanced Detective: A Dual-Stage Proactive Defense Against Internal Poisoning Attacks in Financial Fraud Detection Using Federated Learning

    Oct 13, 2026Maria-Ioana-Andrea Ivan, Orhan Ermis, Ruxandra F. OlimidFederated Learning AggregationFederated Learning

    Department of Computer Science, University of Bucharest · Luxembourg Institute of Science and Technology (LIST), Luxembourg · Research Institute of the University of Bucharest (ICUB), Bucharest, Romania

  14. Benchmarking Quantum Kernel SVMs for Credit Card Fraud Detection: Performance Realities Under NISQ Constraints

    Oct 12, 2026Hitanshi Arora, Mohit Swarnkar, Aswani Kumar CherukuriQuantum Machine LearningQuantum Kernel Methods

  15. AMLworld-Compact: Importance-Weighted Downsampling for Cost-Effective LLM Evaluation and Error Diagnosis

    Oct 9, 2026Natapong Nitarach, Phume Ngampornsukswadi, Pittawat Taveekitworachai +3Stratified SamplingAnti-Money Laundering Detection

    SCB DataX, SCBX Group · Independent Researcher

  16. Evi-VN: Hard Region Guided Virtual Node Evidence Injection for GNN-Based Fraud Detection

    Oct 8, 2026Jiran Tao, Yifan Wu, Binyan JiangGraph Neural NetworksFinancial Fraud Detection

    The Hong Kong Polytechnic University

  17. A Cognitive-Aware QML-CRL Framework for Detecting Affinity and Romance-Investment Fraud

    Oct 6, 2026Bibhas Adhikari, Ramya SrinivasanFinancial Fraud Detection

    Fujitsu Research of America, Inc., Santa Clara, CA, USA · Security Science Lab, Fujitsu Research of America, Santa Clara, CA 95054 Inc.

  18. When Does AI Supervision Help? A Role-Aware Study of Network Fraud Decision Management with Blockchain Auditability

    Oct 5, 2026Saviz Changizi, Nasibeh Mohammadzadeh, Mohammad Shojafar +1AI-Assisted Decision MakingFinancial Fraud Detection

    6G Innovation Centre, Institute for Communication Systems, University of Surrey, Guildford, United Kingdom · Department of Network Engineering, Universitat Politècnica de Catalunya (UPC), Barcelona, Spain

  19. Machine learning for journal entry testing: A type-aware evaluation of anomaly detectors under a review budget

    Oct 5, 2026Jan Gronewald, Michel Scherer, Nijat MehdiyevFinancial Fraud DetectionUnsupervised Anomaly Detection

    Saarland University, Campus, 66123, Saarbrücken, Germany · German Research Center for Artificial Intelligence (DFKI), Institute for Information Systems (IWi), Campus D3.2, 66123, Saarbrücken, Germany · Leipzig University, Grimmaische Straße 12, 04109, Leipzig, Germany

  20. Usefulness of Quantile-Aware Diffusion Modeling for Highly Imbalanced Tabular Data

    Oct 5, 2026Abu Talha, Peng Liu, Souradyuti PaulClass-Imbalanced LearningSynthetic Data Augmentation

    Indian Institute of Technology Bhilai, Durg, C.G. 491002, India · Loughborough University, Loughborough, LE11 3TU, United Kingdom

  21. Dual-Scale Relational Graph Transformers for Ecosystem-Aware Fraud Detection

    Oct 2, 2026Mohsen Nayebi Kerdabadi, Xinrou Li, Yao Xiao +2Financial Fraud DetectionGraph Transformer

    University of Kansas, Lawrence, KS, USA · AI Foundations, Capital One, McLean, VA, USA

  22. Landscape-Dependent Performance of Photonic Quantum Solvers in QUBO Feature Selection for Financial Risk Detection

    Oct 2, 2026Nirvik Sahoo, Paul Robert GriffinFeature SelectionPhotonic Computing

    Singapore Management University 80 Stamford Road, Singapore 178902

  23. Behavior-Grounded Semantic Enrichment for Financial Fraud Modeling and Reasoning

    Sep 28, 2026Linbo Shao, Huilin He, Yating Lou +1Synthetic Data GenerationFinancial Fraud Detection

    School of Computer Science and Technology, Tongji University, Shanghai, China

  24. Posterior Regimes and Latent Deception: Variational Bayesian Inference in Hidden Markov Models for Sequential Fraud Detection in Financial Transactions

    Sep 27, 2026Joseph Uririoghene Obukofe, Anthony O'Hare, Chioma Sandra DikeProbability CalibrationFinancial Fraud Detection

    Computing Science and Mathematics, Faculty of Natural Sciences, University of Stirling, Stirling FK9 4LA, Scotland, United Kingdom · University of Nottingham, Nottingham, NG7 2RD, United Kingdom

  25. Collaborative Synthetic Data for Privacy-Preserving Financial Fraud Detection Across Organizational Silos

    Sep 27, 2026Simeon Allmendinger, Domenique Zipperling, Burhanettin Bahadir Kibar +1Synthetic Data AugmentationSynthetic Data Generation

    University of Bayreuth, AI Responsibility Centre, and Fraunhofer FIT, Universitätstraße 30, 95447 Bayreuth, Germany · Technical University of Munich, Arcisstraße 21, 80333 Munich, Germany

  26. TNF based Spectral Embedding for Effective Application of Supervised Machine Learning Techniques in Automobile Insurance Fraud Detection

    Sep 27, 2026Rohan Yashraj Gupta, Lalith Srikanth Chintalapati, Satya Sai Mudigonda +2Financial Fraud DetectionSpectral Methods

    Department of Mathematics and Computer Science, Sri Sathya Sai Institute of Higher Learning, Vidyagiri, Puttaparthi, Andhra Pradesh, India.

  27. Agentic Commerce Bench: Measuring Fraud Detection for Agents That Spend Money

    Sep 27, 2026Ankit Srivastava, Debjyoti PaulAgentic CommerceFinancial Fraud Detection

    Gordon AI

  28. An Attention-Driven Heterogeneous GNN Model for Credit Card Fraud Detection

    Sep 26, 2026Kathiresan Jayabalan, Sethuraman RadhakrishnanFinancial Fraud Detection

    Research Scholar, Department of Computer Science and Engineering, Sathyabama Institute of Science and Technology, Chennai, 600119, Tamil Nadu, India · Associate Professor, Department of Computer Science and Engineering, Sathyabama Institute of Science and Technology, Chennai, 600119, Tamil Nadu, India

  29. PixSim: a calibrated open-source simulator of instant-payment fraud, recovery and interdiction under analyst capacity constraints

    Sep 25, 2026Bashir Zeimarani, Alireza Khatib, Somayeh Mousavinasr +1Financial ServicesFinancial Fraud Detection

    Instituto CERTI Amazônia, Manaus, Brazil · Universidade Federal do Amazonas, Manaus, Brazil · Universidade do Estado do Amazonas, Manaus, Brazil

  30. SR-Fraud: An Outcome-Supervised Reflective LLM Agent Framework for Non-Stationary Payment Fraud Detection

    Sep 23, 2026Xuwei Tan, Yao Ma, Xueru ZhangConcept DriftFinancial Fraud Detection

    Coinbase, Inc. · The Ohio State University