Intelligent financial fraud detection practices in post-pandemic era

Xiaoqian Zhu; Xiang Ao; Zidi Qin; Yanpeng Chang; Yang Liu; Qing He; Jianping Li

doi:10.1016/j.xinn.2021.100176

Intelligent financial fraud detection practices in post-pandemic era

Innovation (Camb). 2021 Oct 20;2(4):100176. doi: 10.1016/j.xinn.2021.100176. eCollection 2021 Nov 28.

Authors

Xiaoqian Zhu^{1

2}, Xiang Ao^{3

4

5}, Zidi Qin^{3

4}, Yanpeng Chang^{2

6}, Yang Liu^{3

4}, Qing He^{3

4}, Jianping Li¹

Affiliations

¹ School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China.
² Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China.
³ Key Lab of Intelligent Information Processing of Chinese Academy of Sciences (CAS), Institute of Computing Technology, CAS, Beijing 100190, China.
⁴ School of Computer Science and Technology, University of Chinese Academy of Sciences, Beijing 100049, China.
⁵ Institute of Intelligent Computing Technology, Suzhou, CAS.
⁶ School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049, China.

Abstract

The great losses caused by financial fraud have attracted continuous attention from academia, industry, and regulatory agencies. More concerning, the ongoing coronavirus pandemic (COVID-19) unexpectedly shocks the global financial system and accelerates the use of digital financial services, which brings new challenges in effective financial fraud detection. This paper provides a comprehensive overview of intelligent financial fraud detection practices. We analyze the new features of fraud risk caused by the pandemic and review the development of data types used in fraud detection practices from quantitative tabular data to various unstructured data. The evolution of methods in financial fraud detection is summarized, and the emerging Graph Neural Network methods in the post-pandemic era are discussed in particular. Finally, some of the key challenges and potential directions are proposed to provide inspiring information on intelligent financial fraud detection in the future.

Keywords: COVID-19 pandemic; artificial intelligence; financial fraud detection.

Publication types

Review