Behavioral Analysis of Customer Transaction Patterns in Financial Fraud ‎Detection: An Integrated Machine Learning Approach

  • Authors

    https://doi.org/10.14419/s0r63575

    Received date: July 13, 2025

    Accepted date: August 14, 2025

    Published date: September 1, 2025

  • Financial Fraud Detection; Behavioral Analysis; Machine Learning; Anomaly Detection; Customer Transaction ‎Patterns; Risk Management

  • Abstract

    Financial fraud detection has emerged as a critical challenge in the contemporary digital economy, with ‎sophisticated fraudulent schemes continuously evolving to exploit vulnerabilities in financial systems. This study ‎presents a comprehensive behavioral analysis of customer transaction patterns to enhance fraud detection ‎capabilities through an integrated machine learning approach. Utilizing a dataset of 100 financial transactions ‎encompassing diverse transaction types (purchases, transfers, withdrawals), customer profiles, and monetary ‎values, we develop a multi-dimensional framework for identifying fraudulent activities. Our analysis reveals ‎significant variations in fraud likelihood across transaction types, with transfer operations exhibiting the highest risk ‎profile at 55%, while withdrawal transactions demonstrated no fraudulent activity. Furthermore, fraudulent ‎transactions showed monetary values 28% higher than legitimate transactions, indicating distinct behavioral ‎patterns. The study contributes to the literature by integrating behavioral finance theory with anomaly detection ‎techniques, providing both theoretical insights and practical applications for financial institutions. Our findings ‎demonstrate that customer behavioral patterns, transaction types, and monetary thresholds serve as robust ‎predictors of fraudulent activity, with machine learning models achieving accuracy rates exceeding 94% while ‎maintaining low false positive rates. The results have important implications for real-time fraud detection systems ‎and risk management strategies in financial institutions‎.

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    Balcıoğlu, Y. S., Merter, A. K., Çelik, B., & Karakaya, T. (2025). Behavioral Analysis of Customer Transaction Patterns in Financial Fraud ‎Detection: An Integrated Machine Learning Approach. International Journal of Basic and Applied Sciences, 14(5), 32-44. https://doi.org/10.14419/s0r63575