Graph-Based Financial Fraud Detection with Calibrated Risk Scoring and Structural Regularization

arXiv cs.LG Papers

Summary

This paper proposes a graph neural network framework for financial fraud detection that integrates transaction records and identity information into node attributes, employs a multi-layer message passing mechanism, and uses weighted supervision and structural consistency regularization to improve risk scoring and probability calibration. Experiments on a public dataset show the method outperforms existing approaches.

arXiv:2605.12782v1 Announce Type: new Abstract: Financial transaction fraud prevention faces challenges such as complex relationship structures, concealed behavioral patterns, and dynamically changing data distribution. Discrimination models relying solely on independent sample features are insufficient to fully characterize the risks of group collaboration and chain transfers within transaction networks. This paper proposes a graph neural network representation learning and risk discrimination framework for financial transaction fraud prevention. It integrates transaction records and identity information into node attributes and constructs a transaction graph based on shared attributes and interaction consistency to explicitly model inter-transaction relationships. In model design, a multi-layer message passing mechanism is employed to aggregate neighborhood information, learn node embedding representations containing structural context semantics, and output transaction-level fraud probability and risk scores through a lightweight risk discrimination head. A weighted supervision objective is introduced to mitigate training bias caused by class imbalance, and structural consistency regularization constraints are combined to suppress the impact of noisy edges on representation drift, thereby improving the stability and usability of risk characterization. Experiments are conducted on a publicly available financial transaction dataset, comparing various methods in the same direction and comprehensively evaluating them under a unified evaluation protocol. The results show that the proposed method outperforms other methods in risk ranking and probability calibration quality, validating the effectiveness of graph structure modeling and representation learning collaboration in financial transaction fraud prevention.
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# Graph-Based Financial Fraud Detection with Calibrated Risk Scoring and Structural Regularization
Source: [https://arxiv.org/abs/2605.12782](https://arxiv.org/abs/2605.12782)
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> Abstract:Financial transaction fraud prevention faces challenges such as complex relationship structures, concealed behavioral patterns, and dynamically changing data distribution\. Discrimination models relying solely on independent sample features are insufficient to fully characterize the risks of group collaboration and chain transfers within transaction networks\. This paper proposes a graph neural network representation learning and risk discrimination framework for financial transaction fraud prevention\. It integrates transaction records and identity information into node attributes and constructs a transaction graph based on shared attributes and interaction consistency to explicitly model inter\-transaction relationships\. In model design, a multi\-layer message passing mechanism is employed to aggregate neighborhood information, learn node embedding representations containing structural context semantics, and output transaction\-level fraud probability and risk scores through a lightweight risk discrimination head\. A weighted supervision objective is introduced to mitigate training bias caused by class imbalance, and structural consistency regularization constraints are combined to suppress the impact of noisy edges on representation drift, thereby improving the stability and usability of risk characterization\. Experiments are conducted on a publicly available financial transaction dataset, comparing various methods in the same direction and comprehensively evaluating them under a unified evaluation protocol\. The results show that the proposed method outperforms other methods in risk ranking and probability calibration quality, validating the effectiveness of graph structure modeling and representation learning collaboration in financial transaction fraud prevention\.

## Submission history

From: Yuhan Wang \[[view email](https://arxiv.org/show-email/b0453833/2605.12782)\] **\[v1\]**Tue, 12 May 2026 21:52:24 UTC \(1,086 KB\)

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