Implementation strategies for real-time transaction monitoring in banking fraud detection

Posted: Oct 31, 2022

• Dr. Scarlett Müller
• Dr. Sophia Park
• Dr. Victoria Mendes

Abstract

The landscape of banking fraud has undergone significant transformation in recent years, with digital transactions becoming the primary vector for fraudulent activities. Traditional fraud detection systems, while effective in their time, now face unprecedented challenges in maintaining security while processing millions of transactions in real-time. The conventional approaches, predominantly rule-based systems augmented with machine learning models, suffer from inherent limitations including delayed response times, high false positive rates, and inability to adapt quickly to emerging fraud patterns. This research addresses these challenges by proposing a novel implementation framework that integrates quantum-inspired optimization with real-time streaming architectures.