Financial analysis presents complex challenges that could leverage large language model (LLM) capabilities. However, the scarcity of challenging financial datasets, particularly for Japanese financial data, impedes academic innovation in financial analytics. As LLMs advance, this lack of accessible research resources increasingly hinders their development and evaluation in this specialized domain. To address this gap, we introduce EDINET-Bench, an open-source Japanese financial benchmark designed to evaluate the performance of LLMs on challenging financial tasks including accounting fraud detection, earnings forecasting, and industry prediction. EDINET-Bench is constructed by downloading annual reports from the past 10 years from Japan's Electronic Disclosure for Investors' NETwork (EDINET) and automatically assigning labels corresponding to each evaluation task. Our experiments reveal that even state-of-the-art LLMs struggle, performing only slightly better than logistic regression in binary classification for fraud detection and earnings forecasting. These results highlight significant challenges in applying LLMs to real-world financial applications and underscore the need for domain-specific adaptation. Our dataset, benchmark construction code, and evaluation code is publicly available to facilitate future research in finance with LLMs.
Money laundering poses a significant challenge as it is estimated to account for 2%-5% of the global GDP. This has compelled regulators to impose stringent controls on financial institutions. One prominent laundering method for evading these controls, called smurfing, involves breaking up large transactions into smaller amounts. Given the complexity of smurfing schemes, which involve multiple transactions distributed among diverse parties, network analytics has become an important anti-money laundering tool. However, recent advances have focused predominantly on black-box network embedding methods, which has hindered their adoption in businesses. In this paper, we introduce GARG-AML, a novel graph-based method that quantifies smurfing risk through a single interpretable metric derived from the structure of the second-order transaction network of each individual node in the network. Unlike traditional methods, GARG-AML strikes an effective balance among computational efficiency, detection power and transparency, which enables its integration into existing AML workflows. To enhance its capabilities, we combine the GARG-AML score calculation with different tree-based methods and also incorporate the scores of the node's neighbours. An experimental evaluation on large-scale synthetic and open-source networks demonstrate that the GARG-AML outperforms the current state-of-the-art smurfing detection methods. By leveraging only the adjacency matrix of the second-order neighbourhood and basic network features, this work highlights the potential of fundamental network properties towards advancing fraud detection.
Anomaly detection (AD) is essential in areas such as fraud detection, network monitoring, and scientific research. However, the diversity of data modalities and the increasing number of specialized AD libraries pose challenges for non-expert users who lack in-depth library-specific knowledge and advanced programming skills. To tackle this, we present AD-AGENT, an LLM-driven multi-agent framework that turns natural-language instructions into fully executable AD pipelines. AD-AGENT coordinates specialized agents for intent parsing, data preparation, library and model selection, documentation mining, and iterative code generation and debugging. Using a shared short-term workspace and a long-term cache, the agents integrate popular AD libraries like PyOD, PyGOD, and TSLib into a unified workflow. Experiments demonstrate that AD-AGENT produces reliable scripts and recommends competitive models across libraries. The system is open-sourced to support further research and practical applications in AD.
Cybersecurity has become essential worldwide and at all levels, concerning individuals, institutions, and governments. A basic principle in cybersecurity is to be always alert. Therefore, automation is imperative in processes where the volume of daily operations is large. Several cybersecurity applications can be addressed as binary classification problems, including anomaly detection, fraud detection, intrusion detection, spam detection, or malware detection. We present three experiments. In the first experiment, we evaluate single classifiers including Random Forests, Light Gradient Boosting Machine, eXtreme Gradient Boosting, Logistic Regression, Decision Tree, and Gradient Boosting Decision Tree. In the second experiment, we test different sampling techniques including over-sampling, under-sampling, Synthetic Minority Over-sampling Technique, and Self-Paced Ensembling. In the last experiment, we evaluate Self-Paced Ensembling and its number of base classifiers. We found that imbalance learning techniques had positive and negative effects, as reported in related studies. Thus, these techniques should be applied with caution. Besides, we found different best performers for each dataset. Therefore, we recommend testing single classifiers and imbalance learning techniques for each new dataset and application involving imbalanced datasets as is the case in several cyber security applications.
Graph Neural Network (GNN) research is rapidly advancing due to GNNs' capacity to learn distributed representations from graph-structured data. However, centralizing large volumes of real-world graph data for GNN training is often impractical due to privacy concerns, regulatory restrictions, and commercial competition. Federated learning (FL), a distributed learning paradigm, offers a solution by preserving data privacy with collaborative model training. Despite progress in training huge vision and language models, federated learning for GNNs remains underexplored. To address this challenge, we present a novel method for federated learning on GNNs based on spectral GNNs equipped with neural ordinary differential equations (ODE) for better information capture, showing promising results across both homophilic and heterophilic graphs. Our approach effectively handles non-Independent and Identically Distributed (non-IID) data, while also achieving performance comparable to existing methods that only operate on IID data. It is designed to be privacy-preserving and bandwidth-optimized, making it suitable for real-world applications such as social network analysis, recommendation systems, and fraud detection, which often involve complex, non-IID, and heterophilic graph structures. Our results in the area of federated learning on non-IID heterophilic graphs demonstrate significant improvements, while also achieving better performance on homophilic graphs. This work highlights the potential of federated learning in diverse and challenging graph settings. Open-source code available on GitHub (https://github.com/SpringWiz11/Fed-GNODEFormer).
Feature management is essential for many online machine learning applications and can often become the performance bottleneck (e.g., taking up to 70% of the overall latency in sales prediction service). Improper feature configurations (e.g., introducing too many irrelevant features) can severely undermine the model's generalization capabilities. However, managing online ML features is challenging due to (1) large-scale, complex raw data (e.g., the 2018 PHM dataset contains 17 tables and dozens to hundreds of columns), (2) the need for high-performance, consistent computation of interdependent features with complex patterns, and (3) the requirement for rapid updates and deployments to accommodate real-time data changes. In this demo, we present FeatInsight, a system that supports the entire feature lifecycle, including feature design, storage, visualization, computation, verification, and lineage management. FeatInsight (with OpenMLDB as the execution engine) has been deployed in over 100 real-world scenarios on 4Paradigm's Sage Studio platform, handling up to a trillion-dimensional feature space and enabling millisecond-level feature updates. We demonstrate how FeatInsight enhances feature design efficiency (e.g., for online product recommendation) and improve feature computation performance (e.g., for online fraud detection). The code is available at https://github.com/4paradigm/FeatInsight.
The detection of telecom fraud faces significant challenges due to the lack of high-quality multimodal training data that integrates audio signals with reasoning-oriented textual analysis. To address this gap, we present TeleAntiFraud-28k, the first open-source audio-text slow-thinking dataset specifically designed for automated telecom fraud analysis. Our dataset is constructed through three strategies: (1) Privacy-preserved text-truth sample generation using automatically speech recognition (ASR)-transcribed call recordings (with anonymized original audio), ensuring real-world consistency through text-to-speech (TTS) model regeneration; (2) Semantic enhancement via large language model (LLM)-based self-instruction sampling on authentic ASR outputs to expand scenario coverage; (3) Multi-agent adversarial synthesis that simulates emerging fraud tactics through predefined communication scenarios and fraud typologies. The generated dataset contains 28,511 rigorously processed speech-text pairs, complete with detailed annotations for fraud reasoning. The dataset is divided into three tasks: scenario classification, fraud detection, fraud type classification. Furthermore, we construct TeleAntiFraud-Bench, a standardized evaluation benchmark comprising proportionally sampled instances from the dataset, to facilitate systematic testing of model performance on telecom fraud detection tasks. We also contribute a production-optimized supervised fine-tuning (SFT) model trained on hybrid real/synthetic data, while open-sourcing the data processing framework to enable community-driven dataset expansion. This work establishes a foundational framework for multimodal anti-fraud research while addressing critical challenges in data privacy and scenario diversity. The project will be released at https://github.com/JimmyMa99/TeleAntiFraud.
We introduce CVQBoost, a novel classification algorithm that leverages early hardware implementing Quantum Computing Inc's Entropy Quantum Computing (EQC) paradigm, Dirac-3 [Nguyen et. al. arXiv:2407.04512]. We apply CVQBoost to a fraud detection test case and benchmark its performance against XGBoost, a widely utilized ML method. Running on Dirac-3, CVQBoost demonstrates a significant runtime advantage over XGBoost, which we evaluate on high-performance hardware comprising up to 48 CPUs and four NVIDIA L4 GPUs using the RAPIDS AI framework. Our results show that CVQBoost maintains competitive accuracy (measured by AUC) while significantly reducing training time, particularly as dataset size and feature complexity increase. To assess scalability, we extend our study to large synthetic datasets ranging from 1M to 70M samples, demonstrating that CVQBoost on Dirac-3 is well-suited for large-scale classification tasks. These findings position CVQBoost as a promising alternative to gradient boosting methods, offering superior scalability and efficiency for high-dimensional ML applications such as fraud detection.
Corporate fraud detection aims to automatically recognize companies that conduct wrongful activities such as fraudulent financial statements or illegal insider trading. Previous learning-based methods fail to effectively integrate rich interactions in the company network. To close this gap, we collect 18-year financial records in China to form three graph datasets with fraud labels. We analyze the characteristics of the financial graphs, highlighting two pronounced issues: (1) information overload: the dominance of (noisy) non-company nodes over company nodes hinders the message-passing process in Graph Convolution Networks (GCN); and (2) hidden fraud: there exists a large percentage of possible undetected violations in the collected data. The hidden fraud problem will introduce noisy labels in the training dataset and compromise fraud detection results. To handle such challenges, we propose a novel graph-based method, namely, Knowledge-enhanced GCN with Robust Two-stage Learning (${\rm KeGCN}_{R}$), which leverages Knowledge Graph Embeddings to mitigate the information overload and effectively learns rich representations. The proposed model adopts a two-stage learning method to enhance robustness against hidden frauds. Extensive experimental results not only confirm the importance of interactions but also show the superiority of ${\rm KeGCN}_{R}$ over a number of strong baselines in terms of fraud detection effectiveness and robustness.
A significant and growing number of published scientific articles is found to involve fraudulent practices, posing a serious threat to the credibility and safety of research in fields such as medicine. We propose Pub-Guard-LLM, the first large language model-based system tailored to fraud detection of biomedical scientific articles. We provide three application modes for deploying Pub-Guard-LLM: vanilla reasoning, retrieval-augmented generation, and multi-agent debate. Each mode allows for textual explanations of predictions. To assess the performance of our system, we introduce an open-source benchmark, PubMed Retraction, comprising over 11K real-world biomedical articles, including metadata and retraction labels. We show that, across all modes, Pub-Guard-LLM consistently surpasses the performance of various baselines and provides more reliable explanations, namely explanations which are deemed more relevant and coherent than those generated by the baselines when evaluated by multiple assessment methods. By enhancing both detection performance and explainability in scientific fraud detection, Pub-Guard-LLM contributes to safeguarding research integrity with a novel, effective, open-source tool.
Graph fraud detection (GFD) has rapidly advanced in protecting online services by identifying malicious fraudsters. Recent supervised GFD research highlights that heterophilic connections between fraudsters and users can greatly impact detection performance, since fraudsters tend to camouflage themselves by building more connections to benign users. Despite the promising performance of supervised GFD methods, the reliance on labels limits their applications to unsupervised scenarios; Additionally, accurately capturing complex and diverse heterophily patterns without labels poses a further challenge. To fill the gap, we propose a Heterophily-guided Unsupervised Graph fraud dEtection approach (HUGE) for unsupervised GFD, which contains two essential components: a heterophily estimation module and an alignment-based fraud detection module. In the heterophily estimation module, we design a novel label-free heterophily metric called HALO, which captures the critical graph properties for GFD, enabling its outstanding ability to estimate heterophily from node attributes. In the alignment-based fraud detection module, we develop a joint MLP-GNN architecture with ranking loss and asymmetric alignment loss. The ranking loss aligns the predicted fraud score with the relative order of HALO, providing an extra robustness guarantee by comparing heterophily among non-adjacent nodes. Moreover, the asymmetric alignment loss effectively utilizes structural information while alleviating the feature-smooth effects of GNNs.Extensive experiments on 6 datasets demonstrate that HUGE significantly outperforms competitors, showcasing its effectiveness and robustness. The source code of HUGE is at https://github.com/CampanulaBells/HUGE-GAD.
Diffusion models (DMs) have emerged as a powerful class of generative AI models, showing remarkable potential in anomaly detection (AD) tasks across various domains, such as cybersecurity, fraud detection, healthcare, and manufacturing. The intersection of these two fields, termed diffusion models for anomaly detection (DMAD), offers promising solutions for identifying deviations in increasingly complex and high-dimensional data. In this survey, we review recent advances in DMAD research. We begin by presenting the fundamental concepts of AD and DMs, followed by a comprehensive analysis of classic DM architectures including DDPMs, DDIMs, and Score SDEs. We further categorize existing DMAD methods into reconstruction-based, density-based, and hybrid approaches, providing detailed examinations of their methodological innovations. We also explore the diverse tasks across different data modalities, encompassing image, time series, video, and multimodal data analysis. Furthermore, we discuss critical challenges and emerging research directions, including computational efficiency, model interpretability, robustness enhancement, edge-cloud collaboration, and integration with large language models. The collection of DMAD research papers and resources is available at https://github.com/fdjingliu/DMAD.
The advent of blockchain technology has facilitated the widespread adoption of smart contracts in the financial sector. However, current fraud detection methodologies exhibit limitations in capturing both global structural patterns within transaction networks and local semantic relationships embedded in transaction data. Most existing models focus on either structural information or semantic features individually, leading to suboptimal performance in detecting complex fraud patterns.In this paper, we propose a dynamic feature fusion model that combines graph-based representation learning and semantic feature extraction for blockchain fraud detection. Specifically, we construct global graph representations to model account relationships and extract local contextual features from transaction data. A dynamic multimodal fusion mechanism is introduced to adaptively integrate these features, enabling the model to capture both structural and semantic fraud patterns effectively. We further develop a comprehensive data processing pipeline, including graph construction, temporal feature enhancement, and text preprocessing. Experimental results on large-scale real-world blockchain datasets demonstrate that our method outperforms existing benchmarks across accuracy, F1 score, and recall metrics. This work highlights the importance of integrating structural relationships and semantic similarities for robust fraud detection and offers a scalable solution for securing blockchain systems.
Credit card fraud incurs a considerable cost for both cardholders and issuing banks. Contemporary methods apply machine learning-based classifiers to detect fraudulent behavior from labeled transaction records. But labeled data are usually a small proportion of billions of real transactions due to expensive labeling costs, which implies that they do not well exploit many natural features from unlabeled data. Therefore, we propose a semi-supervised graph neural network for fraud detection. Specifically, we leverage transaction records to construct a temporal transaction graph, which is composed of temporal transactions (nodes) and interactions (edges) among them. Then we pass messages among the nodes through a Gated Temporal Attention Network (GTAN) to learn the transaction representation. We further model the fraud patterns through risk propagation among transactions. The extensive experiments are conducted on a real-world transaction dataset and two publicly available fraud detection datasets. The result shows that our proposed method, namely GTAN, outperforms other state-of-the-art baselines on three fraud detection datasets. Semi-supervised experiments demonstrate the excellent fraud detection performance of our model with only a tiny proportion of labeled data.
Graph neural networks (GNNs) have emerged as an effective tool for fraud detection, identifying fraudulent users, and uncovering malicious behaviors. However, attacks against GNN-based fraud detectors and their risks have rarely been studied, thereby leaving potential threats unaddressed. Recent findings suggest that frauds are increasingly organized as gangs or groups. In this work, we design attack scenarios where fraud gangs aim to make their fraud nodes misclassified as benign by camouflaging their illicit activities in collusion. Based on these scenarios, we study adversarial attacks against GNN-based fraud detectors by simulating attacks of fraud gangs in three real-world fraud cases: spam reviews, fake news, and medical insurance frauds. We define these attacks as multi-target graph injection attacks and propose MonTi, a transformer-based Multi-target one-Time graph injection attack model. MonTi simultaneously generates attributes and edges of all attack nodes with a transformer encoder, capturing interdependencies between attributes and edges more effectively than most existing graph injection attack methods that generate these elements sequentially. Additionally, MonTi adaptively allocates the degree budget for each attack node to explore diverse injection structures involving target, candidate, and attack nodes, unlike existing methods that fix the degree budget across all attack nodes. Experiments show that MonTi outperforms the state-of-the-art graph injection attack methods on five real-world graphs.
Outlier detection (OD), also known as anomaly detection, is a critical machine learning (ML) task with applications in fraud detection, network intrusion detection, clickstream analysis, recommendation systems, and social network moderation. Among open-source libraries for outlier detection, the Python Outlier Detection (PyOD) library is the most widely adopted, with over 8,500 GitHub stars, 25 million downloads, and diverse industry usage. However, PyOD currently faces three limitations: (1) insufficient coverage of modern deep learning algorithms, (2) fragmented implementations across PyTorch and TensorFlow, and (3) no automated model selection, making it hard for non-experts. To address these issues, we present PyOD Version 2 (PyOD 2), which integrates 12 state-of-the-art deep learning models into a unified PyTorch framework and introduces a large language model (LLM)-based pipeline for automated OD model selection. These improvements simplify OD workflows, provide access to 45 algorithms, and deliver robust performance on various datasets. In this paper, we demonstrate how PyOD 2 streamlines the deployment and automation of OD models and sets a new standard in both research and industry. PyOD 2 is accessible at [https://github.com/yzhao062/pyod](https://github.com/yzhao062/pyod). This study aligns with the Web Mining and Content Analysis track, addressing topics such as the robustness of Web mining methods and the quality of algorithmically-generated Web data.
Anomaly detection (AD) is an important machine learning task with many real-world uses, including fraud detection, medical diagnosis, and industrial monitoring. Within natural language processing (NLP), AD helps detect issues like spam, misinformation, and unusual user activity. Although large language models (LLMs) have had a strong impact on tasks such as text generation and summarization, their potential in AD has not been studied enough. This paper introduces AD-LLM, the first benchmark that evaluates how LLMs can help with NLP anomaly detection. We examine three key tasks: (i) zero-shot detection, using LLMs' pre-trained knowledge to perform AD without tasks-specific training; (ii) data augmentation, generating synthetic data and category descriptions to improve AD models; and (iii) model selection, using LLMs to suggest unsupervised AD models. Through experiments with different datasets, we find that LLMs can work well in zero-shot AD, that carefully designed augmentation methods are useful, and that explaining model selection for specific datasets remains challenging. Based on these results, we outline six future research directions on LLMs for AD.
Anomaly detection (AD) is a critical machine learning task with diverse applications in web systems, including fraud detection, content moderation, and user behavior analysis. Despite its significance, AD in natural language processing (NLP) remains underexplored, limiting advancements in detecting anomalies in text data such as harmful content, phishing attempts, or spam reviews. In this paper, we introduce NLP-ADBench, the most comprehensive benchmark for NLP anomaly detection (NLP-AD), comprising eight curated datasets and evaluations of nineteen state-of-the-art algorithms. These include three end-to-end methods and sixteen two-step algorithms that apply traditional anomaly detection techniques to language embeddings generated by bert-base-uncased and OpenAI's text-embedding-3-large models. Our results reveal critical insights and future directions for NLP-AD. Notably, no single model excels across all datasets, highlighting the need for automated model selection. Moreover, two-step methods leveraging transformer-based embeddings consistently outperform specialized end-to-end approaches, with OpenAI embeddings demonstrating superior performance over BERT embeddings. By releasing NLP-ADBench at https://github.com/USC-FORTIS/NLP-ADBench, we provide a standardized framework for evaluating NLP-AD methods, fostering the development of innovative approaches. This work fills a crucial gap in the field and establishes a foundation for advancing NLP anomaly detection, particularly in the context of improving the safety and reliability of web-based systems.
Graph Neural Networks (GNNs) have demonstrated their effectiveness in various graph learning tasks, yet their reliance on neighborhood aggregation during inference poses challenges for deployment in latency-sensitive applications, such as real-time financial fraud detection. To address this limitation, recent studies have proposed distilling knowledge from teacher GNNs into student Multi-Layer Perceptrons (MLPs) trained on node content, aiming to accelerate inference. However, these approaches often inadequately explore structural information when inferring unseen nodes. To this end, we introduce SimMLP, a Self-supervised framework for learning MLPs on graphs, designed to fully integrate rich structural information into MLPs. Notably, SimMLP is the first MLP-learning method that can achieve equivalence to GNNs in the optimal case. The key idea is to employ self-supervised learning to align the representations encoded by graph context-aware GNNs and neighborhood dependency-free MLPs, thereby fully integrating the structural information into MLPs. We provide a comprehensive theoretical analysis, demonstrating the equivalence between SimMLP and GNNs based on mutual information and inductive bias, highlighting SimMLP's advanced structural learning capabilities. Additionally, we conduct extensive experiments on 20 benchmark datasets, covering node classification, link prediction, and graph classification, to showcase SimMLP's superiority over state-of-the-art baselines, particularly in scenarios involving unseen nodes (e.g., inductive and cold-start node classification) where structural insights are crucial. Our codes are available at: https://github.com/Zehong-Wang/SimMLP.
As the availability of financial services online continues to grow, the incidence of fraud has surged correspondingly. Fraudsters continually seek new and innovative ways to circumvent the detection algorithms in place. Traditionally, fraud detection relied on rule-based methods, where rules were manually created based on transaction data features. However, these techniques soon became ineffective due to their reliance on manual rule creation and their inability to detect complex data patterns. Today, a significant portion of the financial services sector employs various machine learning algorithms, such as XGBoost, Random Forest, and neural networks, to model transaction data. While these techniques have proven more efficient than rule-based methods, they still fail to capture interactions between different transactions and their interrelationships. Recently, graph-based techniques have been adopted for financial fraud detection, leveraging graph topology to aggregate neighborhood information of transaction data using Graph Neural Networks (GNNs). Despite showing improvements over previous methods, these techniques still struggle to keep pace with the evolving camouflaging tactics of fraudsters and suffer from information loss due to over-smoothing. In this paper, we propose a novel algorithm that employs an efficient neighborhood sampling method, effective for camouflage detection and preserving crucial feature information from non-similar nodes. Additionally, we introduce a novel GNN architecture that utilizes attention mechanisms and preserves holistic neighborhood information to prevent information loss. We test our algorithm on financial data to show that our method outperforms other state-of-the-art graph algorithms.