AI RESEARCH
Fraud Type Decomposition and the Observation-Mechanism Taxonomy:Class-Specific Detection Limits in Payment Networks
arXiv CS.LG
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ArXi:2605.31257v1 Announce Type: new Fraud detection in payment networks relies on labels generated through heterogeneous and imperfect observation processes, yet existing approaches treat fraud as a homogeneous binary variable. We show that this assumption is structurally incorrect and leads to provable inefficiency. We