In this paper, we present a fraud detection framework for publicly traded firms using an optimization approach integrated with a meta-heuristic algorithm known as Beetle Antennae Search (BAS). Existing techniques include human resources, like financial experts and audit teams, to determine the ambiguities or financial frauds in the companies based on financial and non-financial ratios. It is a laborious task, time-consuming, and prone to errors. We designed an optimization problem to minimize the loss function based on a non-linear decision function combined with the maximization of recall (Sensitivity and Specificity). We solved the optimization problem iteratively using the BAS. It is a nature-inspired algorithm and mimics the beetle’s food-searching nature. It includes a single searching particle to find an optimal solution to the optimization problem in n -dimensional space. We used a benchmark dataset collected from SEC’s Accounting and Auditing Enforcement Releases (AAERs) for the simulation. It includes 28 raw financial variables and the data collected between 1991- 2008 . For the comparison, we evaluated the performance of BAS with the recently proposed approach using RUSBoost. We also compared it with some additional algorithms, i.e., Logit and SVM-FK. The results showed that BAS is comparable with these algorithms and outperformed them in time consumption.

Fraud detection in publicly traded U.S firms using Beetle Antennae Search: A machine learning approach

In this paper, we present a fraud detection framework for publicly traded firms using an optimization approach integrated with a meta-heuristic algorithm known as Beetle Antennae Search (BAS). Existing techniques include human resources, like financial experts and audit teams, to determine the ambiguities or financial frauds in the companies based on financial and non-financial ratios. It is a laborious task, time-consuming, and prone to errors. We designed an optimization problem to minimize the loss function based on a non-linear decision function combined with the maximization of recall (Sensitivity and Specificity). We solved the optimization problem iteratively using the BAS. It is a nature-inspired algorithm and mimics the beetle’s food-searching nature. It includes a single searching particle to find an optimal solution to the optimization problem in n -dimensional space. We used a benchmark dataset collected from SEC’s Accounting and Auditing Enforcement Releases (AAERs) for the simulation. It includes 28 raw financial variables and the data collected between 1991–2008. For the comparison, we evaluated the performance of BAS with the recently proposed approach using RUSBoost. We also compared it with some additional algorithms, i.e., Logit and SVM-FK. The results showed that BAS is comparable with these algorithms and outperformed them in time consumption. • Fraud detection in US-Public firms using BAS algorithm. • BAS is computationally and time-wise efficient. • Unbalanced Public firms’ dataset is tackled with SMOTE and BAS. • Achieved state-of-the-art accuracy in comparison with other algorithms. • Time efficiency of BAS outperformed other algorithms. 

Recently, Internet of Things (IoT) technology has emerged in many aspects of life, such as transportation, healthcare, and even education. IoT technology incorporates several tasks to achieve the goals for which it was developed through smart services. These services are intelligent activities that allow devices to interact with the physical world to provide suitable services to users anytime and anywhere. However, the remarkable advancement of this technology has increased the number and the mechanisms of attacks. Attackers often take advantage of the IoTs’ heterogeneity to cause trust problems and manipulate the behavior to delude devices’ reliability and the service provided through it. Consequently, trust is one of the security challenges that threatens IoT smart services. Trust management techniques have been widely used to identify untrusted behavior and isolate untrusted objects over the past few years. However, these techniques still have many limitations like ineffectiveness when dealing with a large amount of data and continuously changing behaviors. Therefore, this paper proposes a model for trust management in IoT devices and services based on the simple multi-attribute rating technique (SMART) and long short-term memory (LSTM) algorithm. The SMART is used for calculating the trust value, while LSTM is used for identifying changes in the behavior based on the trust threshold. The effectiveness of the proposed model is evaluated using accuracy, loss rate, precision, recall, and F-measure on different data samples with different sizes. Comparisons with existing deep learning and machine learning models show superior performance with a different number of iterations. With 100 iterations, the proposed model achieved 99.87% and 99.76% of accuracy and F-measure, respectively.

https://www.mdpi.com/1424-8220/22/2/634/pdf?version=1642383186

A Trust Management Model for IoT Devices and Services Based on the Multi-Criteria Decision-Making Approach and Deep Long Short-Term Memory Technique

Insurance Fraud Detection: Evidence from Artificial Intelligence and Machine Learning

In the COVID-19 era, people face situations that they have never experienced before, which alerted the importance of the ESG. Investors also consider ESG indexes as an essential factor for their investments, and some research yielded that the return on sustainable funds is more significant than on non-sustainable ones. Nevertheless, a deficiency in research exists about analyzing ESG through artificial intelligence algorithms due to adversity in collecting ESG-related datasets. Therefore, this paper suggests integrated AI approaches to the ESG datasets with the five different experiments. We also focus on analyzing the governance and social datasets through NLP algorithms and propose a straightforward method for predicting a specific firm’s ESG rankings. Results were evaluated through accuracy score, RMSE, and MAE, and every experiment conducted relevant scores that achieved our aim. From the results, it could be concluded that this paper successfully analyzes ESG data with various algorithms. Unlike previous related research, this paper also emphasizes the importance of the adversarial attacks on the ESG datasets and suggests methods to detect them effectively. Furthermore, this paper proposes a simple way to predict ESG rankings, which would be helpful for small businesses. Even though it is our limitation that we only use restricted datasets, our research proposes the possibility of applying the AI algorithms to the ESG datasets in an integrated approach.

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Proposing an Integrated Approach to Analyzing ESG Data via Machine Learning and Deep Learning Algorithms

As the use of the internet is growing exponentially, more and more businesses such as the financial sector are operationalizing their services online. Consequently, financial frauds are increasing ...

A Financial Fraud Detection Model Based on LSTM Deep Learning Technique

Cloud computing is currently becoming a well-known buzzword in which business titans, such as Microsoft, Amazon, and Google, among others, are at the forefront in developing and providing sophisticated cloud computing systems to their users in a cost-effective manner. Security is the biggest concern for cloud computing and is a major obstacle to users adopting cloud computing systems. Maintaining the security of cloud computing is important, especially for the infrastructure. Several research works have been conducted in the cloud infrastructure security area; however, some gaps have not been completely addressed, while new challenges continue to arise. This paper presents a comprehensive survey of the security issues at different cloud infrastructure levels (e.g., application, network, host, and data). It investigates the most prominent issues that may affect the cloud computing business model with regard to infrastructure. It further discusses the current solutions proposed in the literature to mitigate the different security issues at each level. To assist in solving the issues, the challenges that are still unsolved are summarized. Based on the exploration of the current challenges, some cloud features such as flexibility, elasticity and the multi-tenancy are found to pose new challenges at each infrastructure level. More specifically, the multi-tenancy is found to have the most impact at all infrastructure levels, as it can lead to several security problems such as unavailability, abuse, data loss and privacy breach. This survey concludes by giving some recommendations for future research.

Secure Cloud Infrastructure: A Survey on Issues, Current Solutions, and Open Challenges

As the Internet of Healthcare Things (IoHT) concept emerges today, Wireless Body Area Networks (WBAN) constitute one of the most prominent technologies for improving healthcare services. WBANs are made up of tiny devices that can effectively enhance patient quality of life by collecting and monitoring physiological data and sending it to healthcare givers to assess the criticality of a patient and act accordingly. The collected data must be reliable and correct, and represent the real context to facilitate right and prompt decisions by healthcare personnel. Anomaly detection becomes a field of interest to ensure the reliability of collected data by detecting malicious data patterns that result due to various reasons such as sensor faults, error readings and possible malicious activities. Various anomaly detection solutions have been proposed for WBAN. However, existing detection approaches, which are mostly based on statistical and machine learning techniques, become ineffective in dealing with big data streams and novel context anomalous patterns in WBAN. Therefore, this paper proposed a model that employs the correlations that exist in the different physiological data attributes with the ability of the hybrid Convolutional Long Short-Term Memory (ConvLSTM) techniques to detect both simple point anomalies as well as contextual anomalies in the big data stream of WBAN. Experimental evaluations revealed that an average of 98% of F1-measure and 99% accuracy were reported by the proposed model on different subjects of the datasets compared to 64% achieved by both CNN and LSTM separately.

https://www.mdpi.com/1424-8220/22/5/1951/pdf?version=1646214561

A Correlation-Based Anomaly Detection Model for Wireless Body Area Networks Using Convolutional Long Short-Term Memory Neural Network

Today with rapid development and adoption of information technology’s applications and services, the way we do business changed significantly and this is making our daily lives more prosperous and hassle-free. Near Field Communication (NFC) has become one of the promising technological developments. This technology is vulnerable to security attacks. These attacks lead to leakage of user’s important data which could affect any organization adopting NFC technologies and applications. The basic objective of this paper is to discuss NFC in general and compare this technology with RFID. Further, we reviewed various attack types and finally we proposed scientific mechanisms that can help to increase the security efficiency of NFC and to provide information protection to NFC technologies.

NFC Technology: Assessment Effective of Security towards Protecting NFC Devices & Services

Deep learning (DL) models are frequently employed to extract valuable features from heterogeneous and high-dimensional healthcare data, which are used to keep track of patient well-being via healthcare monitoring systems. Essentially, the training and testing data for such models are collected by huge IoT devices that may contain noise (e.g., incorrect labels, abnormal data, and incomplete information) and may be subject to various types of adversarial attacks. Therefore, to ensure the reliability of the various Internet of Healthcare Things (IoHT) applications, the training and testing data that are required for such DL techniques should be guaranteed to be clean. This paper proposes a hybrid convolutional long short-term memory (ConvLSTM) technique to assure the reliability of IoHT monitoring applications by detecting anomalies and adversarial content in the training data used for developing DL models. Furthermore, countermeasure techniques are suggested to protect the DL models against such adversarial attacks during the training phase. An experimental evaluation using the public PhysioNet dataset demonstrates the ability of the proposed model to detect anomalous readings in the presence of adversarial attacks that were introduced in the training and testing stages. The evaluation results revealed that the model achieved an average F1 score of 97% and an accuracy of 98%, despite the introduction of adversarial attacks.

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Detection of Adversarial Attacks against the Hybrid Convolutional Long Short-Term Memory Deep Learning Technique for Healthcare Monitoring Applications

Albatul Albattah

Papers

A Financial Fraud Detection Model Based on LSTM Deep Learning Technique

Secure Cloud Infrastructure: A Survey on Issues, Current Solutions, and Open Challenges

A Correlation-Based Anomaly Detection Model for Wireless Body Area Networks Using Convolutional Long Short-Term Memory Neural Network

NFC Technology: Assessment Effective of Security towards Protecting NFC Devices & Services

Detection of Adversarial Attacks against the Hybrid Convolutional Long Short-Term Memory Deep Learning Technique for Healthcare Monitoring Applications