mlsanityData to 14 Oct 2026

A Dual-Path Generative Framework for Zero-Day Fraud Detection in Banking Systems

arXiv 2603.13237 ↗First posted 17 Feb 2026cs.AI cs.CRcited by 0

Not on the map. Why?

Abstract (arXiv)

High-frequency banking environments face a critical trade-off between low-latency fraud detection and the regulatory explainability demanded by GDPR. Traditional rule-based and discriminative models struggle with "zero-day" attacks due to extreme class imbalance and the lack of historical precedents. This paper proposes a Dual-Path Generative Framework that decouples real-time anomaly detection from offline adversarial training. The architecture employs a Variational Autoencoder (VAE) to establish a legitimate transaction manifold based on reconstruction error, ensuring <50ms inference latency. In parallel, an asynchronous Wasserstein GAN with Gradient Penalty (WGAN-GP) synthesizes high-entropy fraudulent scenarios to stress-test the detection boundaries. Crucially, to address the non-differentiability of discrete banking data (e.g., Merchant Category Codes), we integrate a Gumbel-Softmax estimator. Furthermore, we introduce a trigger-based explainability mechanism where SHAP (Shapley Additive Explanations) is activated only for high-uncertainty transactions, reconciling the computational cost of XAI with real-time throughput requirements.

Key facts. No citing papers in the map yet (data through 14 Oct 2026). Builds on 2 of its 8 references that are in the map. First posted on arXiv 17 Feb 2026.

Builds on

2 of 8 references.

References · 2

  1. 2025Application of Deep Generative Models for Anomaly Detection in Complex Financial Transactionscited by 4
  2. 2025Improving Credit Card Fraud Detection through Transformer-Enhanced GAN Oversamplingcited by 2

Built on by

Not cited yet.