Digital trades and payments are becoming increasingly popular, as they typically entail monetary transactions. This not only makes electronic transactions more convenient for the end customer, but it also raises the likelihood of fraud. An adequate fraud detection system with a cutting-edge model is critical to minimizing fraud costs. Identifying fraud at the ideal time entails establishing and setting up ubiquitous systems to consume and analyze massive amounts of streaming data. Recent advances in data analytics methods and introducing open-source technology for big data storage and processing opened new options for detecting fraud. This study aims to tackle this critical issue by providing a newly real-time e-transaction fraud detection schema that consolidates the advantages of both unsupervised learners, including autoencoder and extended isolation forests, with cutting-edge big data gadgets such as Spark streaming and sparkling water. It addresses the shortage of non-fraudulent instances and handles the excessive dimension of the set of features. On two real-world transactional datasets, we assess our suggested technique. Compared with other current fraud identification systems, our methodology delivers an elevated accuracy yield of 99%. Furthermore, it outperforms state-of-the-art approaches in reliably identifying fraudulent samples. Doi: 10.28991/HIJ-2024-05-01-014 Full Text: PDF

Increased digital banking operations have brought about a surge in suspicious activities, necessitating heightened real-time fraud detection systems. Conversely, traditional static approaches encounter challenges in maintaining privacy while adapting to new fraudulent trends. In this paper, we provide a unique approach to tackling those challenges by integrating VAE-QLSTM with Federated Learning (FL) in a semi-decentralized architecture, maintaining privacy alongside adapting to emerging malicious behaviors. The suggested architecture builds on the adeptness of VAE-QLSTM to capture meaningful representations of transactions, serving in abnormality detection. On the other hand, QLSTM combines quantum computational capability with temporal sequence modeling, seeking to give a rapid and scalable method for real-time malignancy detection. The designed approach was set up through TensorFlow Federated on two real-world datasets—notably IEEE-CIS and European cardholders—outperforming current strategies in terms of accuracy and sensitivity, achieving 94.5% and 91.3%, respectively. This proves the potential of merging VAE-QLSTM with FL to address fraud detection difficulties, ensuring privacy and scalability in advanced banking networks.

Since the use of the Internet has increased exponentially, numerous organizations, including the financial industry, offer services online. As a result, financial scams are expanding in quantity and complexity worldwide, resulting in massive revenue losses and making digital fraudulent transactions a severe issue. Abnormal attempts and illegal access are instances of these dangers that fraudulent activity detection systems must identify. Machine learning and data mining approaches have been extensively used to address this issue in recent years. However, these approaches must be enhanced regarding real-time detection speed, tackling enormous amounts of data, and finding undiscovered attack patterns. Consequently, the present study provides a real-time architecture for averting and identifying digital transaction fraud, which relies on the Isolation Forest (IForest) approach and big data analytic tools, including Spark Streaming, sparkling water, Kafka, and PostgreSQL. This architecture seeks to improve present detection strategies by increasing accuracy for detection when considering enormous amounts of data. Two real datasets of online transactional fraud are used to assess the proposed architecture, and the findings are compared to relevant studies. The investigation results showed that IForest performed flawlessly, achieving an accuracy of 0.99 in two datasets.

The general Bagley-Torvik fractional order system is represented by the Bagley-Torvik equation with a real order derivative instead of 1/2 or 3/2 order derivative. This fractional order system can exhibit behaviors that range from relaxation to oscillation for different values of the real derivative order and the damping ratio-like parameters. For this reason, it is interesting to take this system as a reference model in feedback control system. The aim of this paper is then to provide analysis of the essentials of the time and frequency performance characteristics of the general Bagley-Torvik fractional order system by varying its two tuning the real derivative order and the damping ratio-like parameters. To show the effectiveness of the proposed reference model, the obtained performance characteristics have been compared to the performance characteristics of the regular second order model.