Blockchain-Data Mining Fusion for Financial Anomaly Detection: A Brief Review

Abstract

Financial anomalies must be detected in order for financial institutions and regulatory bodies to manage risks and avoid fraudulent behavior. Financial anomaly detection is the practice of identifying unexpected or irregular financial transactions or patterns that may indicate fraudulent behavior or errors. It is crucial in today's digital era to prevent fraud, limit financial losses, and maintain secure financial systems. Various types of financial anomalies, such as credit card fraud, money laundering, financial statement fraud, and cryptocurrency fraud, pose significant risks to individuals and organizations. This review critically evaluates a selected research article on the use of blockchain technology in conjunction with data mining techniques to detect financial anomalies. The paper employs the case study method to demonstrate how well the suggested integrated system works in spotting financial anomalies. This review evaluates the article's methodology and conclusions and discusses its implications for practice. The report claims that merging data mining methods with blockchain technology can increase the precision and effectiveness of financial anomaly identification. This research advances knowledge about how block-chain technology and data mining techniques can be used to find financial abnormalities while also offering suggestions for further study and use.