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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM63647
Volume:
10 |
5 |
May 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
CSE
Alpha College of Engineering
The growing adoption of digital payment platforms has led to a rise in financial fraud, creating a strong need for intelligent and flexible fraud detection techniques. Traditional rule-driven methods and supervised machine learning models frequently struggle to detect new or evolving fraud patterns because they rely heavily on labelled datasets. This study proposes an unsupervised anomaly detection approach using a deep autoencoder model to detect suspicious financial transactions. The framework is trained only with genuine transaction records so that it can capture the normal behaviour of users through compressed latent features. Fraudulent activities are detected by measuring reconstruction errors and applying a threshold determined through percentile-based analysis. Tests conducted on a real credit card transaction dataset show that the proposed method provides high recall and effective classification performance, indicating its potential for practical use in real-time financial fraud monitoring systems.
KEYWORDS
This study proposes an efficient and scalable deep learning framework for anomaly detection in financial transactions. By utilizing an unsupervised learning strategy, the model can successfully detect fraudulent activities without the need for labelled training data. Experimental results demonstrate the effectiveness of the proposed approach and its suitability for deployment in practical financial fraud detection environments. Future enhancements of this work may include: · Hybrid Detection Models: Combining autoencoder-based anomaly detection with supervised learning techniques to further improve detection accuracy. · Real-Time Fraud Monitoring: Extending the framework to support real-time transaction analysis and streaming fraud detection systems. · Graph-Based Fraud Analysis: Integrating graph learning methods to capture hidden relationships and complex fraud networks among transactions.
1. Goodfellow, I., Bengio, Y., & Courville, A. (2016). Deep learning. MIT Press. 2. Chandola, V., Banerjee, A., & Kumar, V. (2009). Anomaly detection: A survey. ACM Computing Surveys, 41(3), 1–58. 3. West, J., & Bhattacharya, M. (2016). Intelligent financial fraud detection: A comprehensive review. IEEE Systems Journal, 11(4), 1–12. 4. Kaggle. (n.d.). Credit card fraud detection dataset. Retrieved from https://www.kaggle.com/datasets 5. Vincent, P., Larochelle, H., Lajoie, I., Bengio, Y., & Manzagol, P. A. (2010). Stacked denoising autoencoders: Learning useful representations in a deep network with a local denoising criterion. Journal of Machine Learning Research, 11, 3371–3408.
Publication Date
5/21/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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