TimeTrail: Unveiling Financial Fraud Patterns through Temporal Correlation Analysis

ArXiv ID: 2308.14215 “View on arXiv”

Authors: Unknown

Abstract

In the field of financial fraud detection, understanding the underlying patterns and dynamics is important to ensure effective and reliable systems. This research introduces a new technique, “TimeTrail,” which employs advanced temporal correlation analysis to explain complex financial fraud patterns. The technique leverages time-related insights to provide transparent and interpretable explanations for fraud detection decisions, enhancing accountability and trust. The “TimeTrail” methodology consists of three key phases: temporal data enrichment, dynamic correlation analysis, and interpretable pattern visualization. Initially, raw financial transaction data is enriched with temporal attributes. Dynamic correlations between these attributes are then quantified using innovative statistical measures. Finally, a unified visualization framework presents these correlations in an interpretable manner. To validate the effectiveness of “TimeTrail,” a study is conducted on a diverse financial dataset, surrounding various fraud scenarios. Results demonstrate the technique’s capability to uncover hidden temporal correlations and patterns, performing better than conventional methods in both accuracy and interpretability. Moreover, a case study showcasing the application of “TimeTrail” in real-world scenarios highlights its utility for fraud detection.

Keywords: Financial Fraud Detection, Temporal Correlation Analysis, Data Enrichment, Interpretable AI, Pattern Visualization

Complexity vs Empirical Score

• Math Complexity: 4.5/10
• Empirical Rigor: 7.5/10
• Quadrant: Street Traders
• Why: The methodology introduces a specific metric (Temporal Interpretability Score) and uses known models (XGBoost), but the math is mostly standard correlation analysis without heavy derivations, placing it in the moderate range. The research provides a concrete dataset with specific statistics and evaluation metrics suitable for implementation, indicating strong empirical grounding.

  flowchart TD
    A["Research Goal: Develop an interpretable<br>temporal correlation technique<br>for financial fraud detection"] --> B["Phase 1: Temporal Data Enrichment<br>(Input: Raw Financial Transactions)"]
    B --> C["Phase 2: Dynamic Correlation Analysis<br>(Compute Temporal Dependencies)"]
    C --> D["Phase 3: Interpretable Pattern Visualization<br>(Unified Framework)"]
    D --> E["Key Findings & Outcomes:<br>- Uncovered hidden temporal correlations<br>- Superior accuracy vs. conventional methods<br>- Enhanced interpretability & trust<br>- Proven in real-world case study"]