Credit cards are a common form of payment not only because they are extremely convenient to use but also because they are widely accepted. Credit cards are not only very easy to use, but they are also readily available. On account of the fact that it is so widely used, there is a substantial amount of concern regarding the protection of sensitive data from fraudulent activities and access by unauthorised individuals. For the purpose of preserving the trust and confidence of users, it is of the utmost importance to make certain that proper security measures are in place. Quantum machine learning (QML) is gaining popularity for classification applications, and a considerable number of the suggestions that have been made for it involve the utilisation of many qubits. This type of learning is becoming increasingly common. It is essential to make every effort to optimise the efficiency and effectiveness of each qubit before adding additional qubits. This should be done before adding more qubits. This is due to the fact that it is probable that these circuits will not always be able to function effectively in the generation of noisy intermediate-scale quantum (NISQ) systems. By utilising a single qubit, the objective of this research is to provide a description of a novel deep quantum neural network that is designed for classification purposes. In comparison to past studies, this network reduces the number of parameters by replicating various tactics that are frequently utilised in convolutional neural networks (CNNs). This is accomplished by reducing the number of parameters. The modified shuffle frog leaping algorithm, also known as MSFLA, is often utilised in order to decide which traits are the most significant while also lowering the amount of computing that is necessary. The purpose is to validate the concept of the first proposal and offer a tested framework for the later development of the application. This will be accomplished through the demonstration of the classification performance of the architecture that is based on a single qubit. Using a dataset that includes records of credit card transactions done by Europeans, the model is assessed in a setting that is reflective of the real world. This is accomplished by using the dataset. A number of components are included in the technique of the proposed model. These components include data pre-processing, feature engineering, ideal selection, evaluation and evaluation, and evaluation and evaluation. The usage of the computational resources provided by Google Colab allows for the training and testing of the model to be carried out with greater efficiency. When compared to individual classifiers, traditional machine learning approaches, and the model that was recommended, it was discovered that the proposed model was more effective in reducing the obstacles connected with detecting credit card fraud. This concluded that the proposed model was more effective. When compared to earlier models, the model that was suggested has a greater degree of performance in terms of accuracy, precision, recall, and F1-score performance characteristics. This is the case when those parameters are measured. The findings that have been provided here provide a foundation for the creation of fraud detection algorithms that are more resilient and flexible. This is something that will become increasingly required as the number of methods that credit card fraud is committed continues to expand.
Credit cards are a common form of payment not only because they are extremely convenient to use but also because they are widely accepted. Credit cards are not only very easy to use, but they are also readily available. On account of the fact that it is so widely used, there is a substantial amount of concern regarding the protection of sensitive data from fraudulent activities and access by unauthorised individuals. For the purpose of preserving the trust and confidence of users, it is of the utmost importance to make certain that proper security measures are in place. Quantum machine learning (QML) is gaining popularity for classification applications, and a considerable number of the suggestions that have been made for it involve the utilisation of many qubits. This type of learning is becoming increasingly common. It is essential to make every effort to optimise the efficiency and effectiveness of each qubit before adding additional qubits. This should be done before adding more qubits. This is due to the fact that it is probable that these circuits will not always be able to function effectively in the generation of noisy intermediate-scale quantum (NISQ) systems. By utilising a single qubit, the objective of this research is to provide a description of a novel deep quantum neural network that is designed for classification purposes. In comparison to past studies, this network reduces the number of parameters by replicating various tactics that are frequently utilised in convolutional neural networks (CNNs). This is accomplished by reducing the number of parameters. The modified shuffle frog leaping algorithm, also known as MSFLA, is often utilised in order to decide which traits are the most significant while also lowering the amount of computing that is necessary. The purpose is to validate the concept of the first proposal and offer a tested framework for the later development of the application. This will be accomplished through the demonstration of the classification performance of the architecture that is based on a single qubit. Using a dataset that includes records of credit card transactions done by Europeans, the model is assessed in a setting that is reflective of the real world. This is accomplished by using the dataset. A number of components are included in the technique of the proposed model. These components include data pre-processing, feature engineering, ideal selection, evaluation and evaluation, and evaluation and evaluation. The usage of the computational resources provided by Google Colab allows for the training and testing of the model to be carried out with greater efficiency. When compared to individual classifiers, traditional machine learning approaches, and the model that was recommended, it was discovered that the proposed model was more effective in reducing the obstacles connected with detecting credit card fraud. This concluded that the proposed model was more effective. When compared to earlier models, the model that was suggested has a greater degree of performance in terms of accuracy, precision, recall, and F1-score performance characteristics. This is the case when those parameters are measured. The findings that have been provided here provide a foundation for the creation of fraud detection algorithms that are more resilient and flexible. This is something that will become increasingly required as the number of methods that credit card fraud is committed continues to expand.
Quantum computing greatly benefit a wide range of fields, including the detection of credit card fraud, through its twin characteristics of improved computational power and efficiency. Quantum algorithms are used to enhance data analysis, pattern recognition and optimization properly with increased speed and efficiency. In the proposed model, we investigate how quantum machine learnings algorithms (QML) are used to spot credit card fraud using a data set that includes transactions from European cardholders. Various models such as neural network activation functions, epochs, and other factors employed in a hybrid quantum-classical method. The results from the best model employing a quantum hybrid technique, a conventional neural network, and an ML approach are compared. For equivalent prediction performance, we find that the quantum models train substantially more effectively than the conventional models. In order to implement Quantum algorithms, penny lane is used for enabling differentiable scripting of quantum computers that is cross-platform. Similar to how a neural network is trained, a quantum computer is trained. Overall, this in-depth investigation of the application of hybrid QML in credit card fraud detection shows significant promise.
Credit Card Fraud Detection (CCFD) is a major concern for the financial industry, requiring rapid and accurate identification of fraudulent transactions amidst vast datasets. The rapid evolution of quantum computing presents transformative opportunities for enhancing Machine Learning (ML) applications, particularly in the domain of financial security. This paper explores the implementation of Quantum Machine Learning (QML) techniques for CCFD, a critical challenge in the financial industry characterized by imbalanced datasets. Traditional ML models, while effective, often struggle with scalability and computational efficiency when processing large-scale transactional data. QML leverages quantum phenomenon namely entanglement and superposition to potentially outperform classical algorithms in feature extraction and pattern recognition. Our study proposes a hybrid quantumclassical framework, integrating Variational Quantum Circuits (VQC) with classical Neural Networks (NN) to classify fraudulent transactions. Using a simulated quantum environment, we preprocess a publicly available credit card transaction dataset, encoding features into quantum states for processing through a parameterized quantum circuit. The model is trained to improves its ability to detect fraud accurately with fewer false positives, addressing the critical issue of customer inconvenience.
Social financial technology focuses on trust, sustainability, and social responsibility, which require advanced technologies to address complex financial tasks in the digital era. With the rapid growth in online transactions, automating credit card fraud detection and loan eligibility prediction has become increasingly challenging. Classical machine learning (ML) models have been used to solve these challenges; however, these approaches often encounter scalability, overfitting, and high computational costs due to complexity and high-dimensional financial data. Quantum computing (QC) and quantum machine learning (QML) provide a promising solution to efficiently processing high-dimensional datasets and enabling real-time identification of subtle fraud patterns. However, existing quantum algorithms lack robustness in noisy environments and fail to optimize performance with reduced feature sets. To address these limitations, we propose a quantum feature deep neural network (QFDNN), a novel, resource efficient, and noise-resilient quantum model that optimizes feature representation while requiring fewer qubits and simpler variational circuits. The model is evaluated using credit card fraud detection and loan eligibility prediction datasets, achieving competitive accuracies of 82.2% and 74.4%, respectively, with reduced computational overhead. Furthermore, we test QFDNN against six noise models, demonstrating its robustness across various error conditions. Our findings highlight QFDNN’s potential to enhance trust and security in social financial technology by accurately detecting fraudulent transactions while supporting sustainability through its resource-efficient design and minimal computational overhead.
The field of financial security faces a hard challenge when it comes to detecting credit card fraud because accurate efficient models are required to separate fraudulent transactions from legitimate ones. Most fraud detection systems today utilize deep learning methods supported by Graph Convolutional Networks and Graph Neural Networks. Companies experience several difficulties when implementing these detection methods because they demonstrate poor scale-up potential and high implementation expenses and insufficient accuracy in complex fraud detection tasks. The research presents the Quantum Long Short-Term Memory (QLSTM) model that demonstrates potential for credit card fraud detection purposes. Despite its quantum nature QLSTM optimizes learning functions by advancing representation of data features while speeding up training time. Our model receives evaluation against GNN along with GCN framework using numerous benchmark datasets for fraud detection. Experimental findings indicate that QLSTM delivers superior performance than GNN and GCN at every stage of various measurement benchmarks. The training process of QLSTM achieves near-perfect 99% accuracy after 100 epochs making it outperform GNN and GCN significantly according to our accuracy comparison graph.
Credit card fraud detection remains a challenging binary classification problem because fraudulent transactions are rare, transaction patterns are complex, and false negatives may have important operational consequences. This study presents a Hybrid Classical–Quantum-Inspired Neural Network (HCQNN) with a simulated variational quantum circuit for credit card fraud detection. The proposed framework combines classical preprocessing, SMOTE-based class balancing, neural network-based feature learning, and quantum-inspired variational feature transformation. The model was evaluated using the Credit Card Fraud Detection dataset after applying SMOTE to the training data and was compared with three classical baseline classifiers: Logistic Regression, Decision Tree, and Linear Support Vector Machine. The experimental results show that the proposed HCQNN achieved an AUC of 97.85%, precision of 91.20%, recall of 90.10%, and an F1-score of 90.64%. These values indicate improved classification balance, particularly in the detection of minority-class fraud cases, compared with the selected baseline models. Training and validation behaviour also showed stable convergence, with training and validation accuracies exceeding 96% and 95%, respectively. Since the variational quantum circuit was simulated on classical hardware, the findings should be interpreted as evidence of the value of hybrid feature learning and quantum-inspired transformations rather than as proof of quantum computational advantage. The study provides a basis for further evaluation using broader datasets, additional baseline models, and real quantum hardware.
Fraud detection is a Crucial aspect of securing financial systems and protecting against fraudulent activities. This paper presents a new method for Detecting fraud, combining quantum-inspired feature engineering and neural network modeling, which achieves a classification accuracy of 92%, with a precision and recall of 0.92 for non-fraudulent transactions. Utilizing QuantumCircuit from Qiskit, the approach encodes input features into quantum states through angle encoding, improving data representation and capturing complex feature interactions such as entanglement between qubits. The method employs a Quantum Neural Network (QNN) for classifying records and effectively identifying fraudulent transactions. Through real-world dataset experiments, we demonstrate the efficacy of the proposed approach, achieving a precision of 0.65 and recall of 0.68 for fraudulent transactions, while maintaining a false positive rate below 10%. This research leverages advanced machine learning techniques, including balanced sampling strategies to address class imbalance and hyperparameter tuning with Grid-SearchCV for optimal model performance. The paper presents a comprehensive evaluation of the approach, highlighting its strengths in adapting to dynamic and complex environments. Quantum-inspired methods offer the potential to significantly enhance fraud detection systems. However, challenges such as computational complexity and resource requirements remain areas for further investigation. Future research will aim to scale these models for larger datasets and investigate their applicability in fields such as healthcare and e-commerce. In conclusion, our work demonstrates the promising use of quantum-enhanced machine learning for fraud detection. This innovative approach paves the way for developing advanced detection systems that can effectively respond to the evolving landscape of fraudulent activities. Future studies could concentrate on refining these techniques and exploring their potential applications in other areas to further harness the advantages of quantum computing in machine learning.