With the continuing growth of E-commerce, credit card fraud has evolved exponentially, where people are using more on-line services to conduct their daily transactions. Fraudsters masquerade normal behaviour of customers to achieve unlawful gains. Fraud patterns are changing rapidly where fraud detection needs to be re-evaluated from a reactive to a proactive approach. In recent years Deep Lear...

Article history: Received 3 October 2012 Received in revised form 16 October 2013 Accepted 28 October 2013 Available online 1 November 2013 We examine the consequences of a damaged reputation for fraud firms in the context of product markets. We generate three direct measures of reputational damage and find evidence that customers impose significant reputational sanctions on fraud firms. Using ...

Neural networks have represented a serious barrier-to-entry in their application in automated fraud detection due to their black box and often proprietary nature which is overcome here by combining them with symbolic rule extraction. A Sparse Oracle-based Adaptive Rule extraction algorithm is used to produce comprehensible rules from a neural network to aid the detection of credit card fraud. I...

Fraud detection has been an important topic of research in the data mining community for the past two decades. Supervised, semi-supervised, and unsupervised approaches to fraud detection have been proposed for the telecommunications, credit, insurance and health-care industries. We describe a novel hybrid system for detecting fraud in the highly growing lotteries and online games of chance sect...

Fraud causes substantial losses to telecommunication carriers. Detection systems which automatically detect illegal use of the network can be used to alleviate the problem. Previous approaches worked on features derived from the call patterns of individual users. In this paper we present a call-based detection system based on a hierarchical regime-switching model. The detection problem is formu...

Everybody can recall some kind of fraud that has been all over the news. If it were Enron, WorldCom, Lernout & Hauspie, Ahold, Société Générale or another case does not matter. Fact is that fraud has become a serious part of our life and hence a serious cost to our economy. Several studies on this phenomenon report shocking numbers: forty-three percent of companies worldwide have fallen victim ...

Transaction frauds impose serious threats onto e-commerce. We present CLUE, a novel deep-learning-based transaction fraud detection system we design and deploy at JD.com, one of the largest ecommerce platforms in China with over 220 million active users. CLUE captures detailed information on users’ click actions using neural-network based embedding, and models sequences of such clicks using the...

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