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Explainable AI framework enhances banking transaction anomaly detection for auditors

By PulseAugur Editorial · [2 sources] ·

This paper introduces an Explainable Artificial Intelligence (XAI) framework designed for anomaly detection in banking transactions, specifically for internal audit purposes. The system utilizes an Isolation Forest model for unsupervised anomaly scoring and a SHAP layer to provide feature-attributed explanations. A Streamlit dashboard makes these outputs accessible to auditors without ML expertise, and evaluations show improved precision and recall compared to baseline methods, with expert feedback indicating enhanced auditor confidence and decision quality. AI

IMPACT Enhances transparency and decision quality in regulated financial environments by making AI outputs interpretable for auditors.

RANK_REASON The cluster contains a research paper detailing a new framework for anomaly detection in banking transactions.

Read on arXiv cs.AI →

AI-generated summary · Google Gemini · from 2 sources. How we write summaries →

Explainable AI framework enhances banking transaction anomaly detection for auditors

COVERAGE [2]

  1. arXiv cs.AI TIER_1 English(EN) · Anupa Lodhi ·

    Explainable Artificial Intelligence for Anomaly Detection in Banking Transactions: An Internal Audit Perspective

    arXiv:2607.13469v1 Announce Type: cross Abstract: The banking sector increasingly relies on automated systems to monitor electronic transactions for signs of fraud, yet conventional rule-based approaches struggle with high false-positive rates and offer no justification for their…

  2. arXiv cs.AI TIER_1 English(EN) · Anupa Lodhi ·

    Explainable Artificial Intelligence for Anomaly Detection in Banking Transactions: An Internal Audit Perspective

    The banking sector increasingly relies on automated systems to monitor electronic transactions for signs of fraud, yet conventional rule-based approaches struggle with high false-positive rates and offer no justification for their outputs, limiting their utility for compliance te…

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