An Evolutionary Framework for Real-Time Fraudulent Credit Detection

Fraud has been a worldwide issue that is facing the major economies of the world. Within an economical system, undetected and unpunished fraudulent activities can erode the public trust in law enforcement institutions and even incentivize more fraud. Therefore, detection of fraudulent activities and prosecution of responsible entities is of utmost importance for financial regulatory bodies around the globe. Of the challenges rising with this task is the scarcity of detection resources (auditors) and the fraudsters constantly adapting to the new circumstances of the market. To address these issues, this paper proposes an evolutionary framework for credit fraud detection with the ability to incorporate (and adapt to) the incoming data in real-time. The goal of the framework is to identify the entities with high a risk of fraud for efficient targeting of the scarce resources. The data that is generated as a result of the audits are fed into the framework for further training.