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Paper · arXiv

Enhanced Detective: A Dual-Stage Proactive Defense Against Internal Poisoning Attacks in Financial Fraud Detection Using Federated Learning

With recent developments in Artificial Intelligence (AI), the adoption of distributed learning paradigms such as Federated Learning (FL) has emerged. In simple terms, FL enables multiple entities to collaboratively train AI models without sharing local data. The FL paradigm is particularly valuable in privacy-sensitive settings, such as financial services, because it enables institutions to collaboratively improve fraud-detection models while keeping sensitive transaction data local. However, FL schemes are prone to security vulnerabilities, where malicious clients can poison local data or model updates and degrade the global model, and hence the performance of the resulting model might b...

AuthorsMaria-Ioana-Andrea Ivan, Orhan Ermis, Ruxandra F. Olimid
Primary categorycs.CR
Published13 October 2026
Last updated at source13 October 2026
cs.CRcs.AI
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