Advanced Real-Time Fraud Detection Using RAG-Based LLMs
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Abstract (arXiv)
Artificial Intelligence has become a double edged sword in modern society being both a boon and a bane. While it empowers individuals it also enables malicious actors to perpetrate scams such as fraudulent phone calls and user impersonations. This growing threat necessitates a robust system to protect individuals In this paper we introduce a novel real time fraud detection mechanism using Retrieval Augmented Generation technology to address this challenge on two fronts. First our system incorporates a continuously updating policy checking feature that transcribes phone calls in real time and uses RAG based models to verify that the caller is not soliciting private information thus ensuring transparency and the authenticity of the conversation. Second we implement a real time user impersonation check with a two step verification process to confirm the callers identity ensuring accountability. A key innovation of our system is the ability to update policies without retraining the entire model enhancing its adaptability. We validated our RAG based approach using synthetic call recordings achieving an accuracy of 97.98 percent and an F1score of 97.44 percent with 100 calls outperforming state of the art methods. This robust and flexible fraud detection system is well suited for real world deployment.
Key facts. Cited by 7 papers in the map (data through 7 Oct 2026). Builds on 6 of its 23 references that are in the map. First posted on arXiv 25 Jan 2025.
Builds on
6 of 23 references.
References · 6
- 2021Ethical and social risks of harm from Language Modelscited by 957
- 2024Revolutionizing Finance with LLMs: An Overview of Applications and Insightscited by 88
- 2024Detecting Scams Using Large Language Modelscited by 10
- 2023An analysis of scam baiting calls: Identifying and extracting scam stages and scriptscited by 6
- 2019Fraud detection in telephone conversations for financial services using linguistic featurescited by 3
- 2024Advancing Anomaly Detection: Non-Semantic Financial Data Encoding with LLMscited by 3
Built on by
Citing papers per year: 2025: 5; 2026: 2.
7 papers.
- 2025TeleAntiFraud-28k: An Audio-Text Slow-Thinking Dataset for Telecom Fraud Detectioncited by 12
- 2025Understanding Structured Financial Data with LLMs: A Case Study on Fraud Detectioncited by 4
- 2025Domain Knowledge-Enhanced LLMs for Fraud and Concept Drift Detectioncited by 2
- 2026SAFE-QAQ: End-to-End Slow-Thinking Audio-Text Fraud Detection via Reinforcement Learningcited by 2
- 2025AI-in-the-Loop: Privacy Preserving Real-Time Scam Detection and Conversational Scambaiting by Leveraging LLMs and Federated Learningcited by 1
- 2025Banking Done Right: Redefining Retail Banking with Language-Centric AIcited by 1
- 2026Reinforcement Learning of Large Language Models for Interpretable Credit Card Fraud Detectioncited by 1
- 2026Reinforcement Learning of Large Language Models for Interpretable Credit Card Fraud Detection9 Jan 2026
- 2026SAFE-QAQ: End-to-End Slow-Thinking Audio-Text Fraud Detection via Reinforcement Learning4 Jan 2026
- 2025Understanding Structured Financial Data with LLMs: A Case Study on Fraud Detection15 Dec 2025
- 2025Banking Done Right: Redefining Retail Banking with Language-Centric AI9 Oct 2025
- 2025AI-in-the-Loop: Privacy Preserving Real-Time Scam Detection and Conversational Scambaiting by Leveraging LLMs and Federated Learning4 Sep 2025
- 2025Domain Knowledge-Enhanced LLMs for Fraud and Concept Drift Detection26 Jun 2025
- 2025TeleAntiFraud-28k: An Audio-Text Slow-Thinking Dataset for Telecom Fraud Detection31 Mar 2025
Similar, not cited
Close in wording, no citation either way
- 2026LLM-Assisted Authentication and Fraud Detection
- 2026Black-Box Forensics for Conversational LLM Agents
- 2026RAG-CT: Mitigating Privacy Risks on Retrieval-Augmented Generation Systems via Scanning Prompt Distribution
- 2024Pirates of the RAG: Adaptively Attacking LLMs to Leak Knowledge Bases
- 2025ScamAgents: How AI Agents Can Simulate Human-Level Scam Calls
- 2024ConfusedPilot: Confused Deputy Risks in RAG-based LLMs
- 2026Rethinking LLMOps for Fraud and AML: Building a Compliance-Grade LLM Serving Stack
- 2026ScamPilot: Simulating Conversations with LLMs to Protect Against Online Scams ↗