Financial Fraud Detection with Anomaly Future Detection

Description

Using data from a credit card issuer, a neural network based fraud detection system was trained on a large sample of labelled credit card account transactions and tested on a holdout data set.The neural network was trained on examples of fraud due to lost cards, stolen cards, application fraud, counterfeit fraud, mail-order fraud and NRI (non-received issue) fraud.Financial fraud, such as money laundering, is known to be a serious process of crime that makes illegitimately obtained funds go to terrorism or other criminal activity. This kind of illegal activities involve complex networks of trade and financial transactions, which makes it difficult to detect the fraud entities and discover the features of fraud. Fortunately, trading/transaction network and features of entities in the network can be constructed from the complex networks of the trade and financial transactions. The trading/transaction network reveals the interaction between entities, and thus anomaly detection on trading networks can reveal the entities involved in the fraud activity; while features of entities are the description of entities, and anomaly detection on features can reflect details of the fraud activities.