Deep Fraud Net: A Deep Learning Approach for Cyber Security and Financial Fraud Detection and Classification

Abstract

Given the growing dependence on digital systems and the escalation of financial fraud occurrences, it is imperative to implement efficient cyber security protocols and fraud detection methodologies. The threat's dynamic nature often challenges conventional methods, necessitating the adoption of more sophisticated strategies. Individuals depend on pre-established regulations or problem-solving processes, which possess constraints in identifying novel and intricate fraudulent trends. Conventional techniques need help handling noise data and the substantial expenses incurred by false positives and true positives. To tackle these obstacles, the present study introduces Deep Fraud Net, a framework that utilizes deep learning to detect and classify instances of financial fraud and cyber security threats. The Deep Fraud Net system model entails the utilization of a deep neural network to acquire intricate patterns and characteristics from extensive datasets through training. The framework integrates noise reduction methods to enhance the precision of fraud detection and improve the quality of input data. The Deep Fraud Net method attains a precision of 98.85%, accuracy of 93.35%, sensitivity of 99.05%, specificity of 93.16%, false positive rate of 7.34%, and true positive rate of 89.58%. The findings suggest that Deep Fraud Net can effectively detect and categorize instances of fraudulent behavior with a reduced occurrence of misclassifications. The method exhibits potential implications for diverse domains that prioritize robust security and fraud detection, including but not limited to banking, e-commerce, and online transactions.