Application of Deep Generative Models for Anomaly Detection in Complex Financial Transactions

This study proposes an algorithm for detecting suspicious behaviors in large payment flows based on deep generative models. By combining Generative Adversarial Networks (GAN) and Variational Autoencoders (VAE), the algorithm is designed to detect abnormal behaviors in financial transactions. First, the GAN is used to generate simulated data that approximates normal payment flows. The discriminator identifies anomalous patterns in transactions, enabling the detection of potential fraud and money laundering behaviors. Second, a VAE is introduced to model the latent distribution of payment flows, ensuring that the generated data more closely resembles real transaction features, thus improving the model's detection accuracy. The method optimizes the generative capabilities of both GAN and VAE, ensuring that the model can effectively capture suspicious behaviors even in sparse data conditions. Experimental results show that the proposed method significantly outperforms traditional machine learning algorithms and other deep learning models across various evaluation metrics, especially in detecting rare fraudulent behaviors. Furthermore, this study provides a detailed comparison of performance in recognizing different transaction patterns (such as normal, money laundering, and fraud) in large payment flows, validating the advantages of generative models in handling complex financial data.

Detecting Credit Card Fraud via Heterogeneous Graph Neural Networks with Graph Attention

This study proposes a credit card fraud detection method based on Heterogeneous Graph Neural Network (HGNN) to address fraud in complex transaction networks. Unlike traditional machine learning methods that rely solely on numerical features of transaction records, this approach constructs heterogeneous transaction graphs. These graphs incorporate multiple node types, including users, merchants, and transactions. By leveraging graph neural networks, the model captures higher-order transaction relationships. A Graph Attention Mechanism is employed to dynamically assign weights to different transaction relationships. Additionally, a Temporal Decay Mechanism is integrated to enhance the model's sensitivity to time-related fraud patterns. To address the scarcity of fraudulent transaction samples, this study applies SMOTE oversampling and Cost-sensitive Learning. These techniques strengthen the model's ability to identify fraudulent transactions. Experimental results demonstrate that the proposed method outperforms existing GNN models, including GCN, GAT, and GraphSAGE, on the IEEE-CIS Fraud Detection dataset. The model achieves notable improvements in both accuracy and OC-ROC. Future research may explore the integration of dynamic graph neural networks and reinforcement learning. Such advancements could enhance the real-time adaptability of fraud detection systems and provide more intelligent solutions for financial risk control.