appendix-b
Appendix B. Comprehensive fraud typology and modeling reference
Designing an effective AI-driven fraud detection system requires more than just understanding the types of fraud. It requires mapping those threats to the right data features and the right machine learning architectures. This appendix serves as a quick-reference guide for fraud practitioners, detailing expanded fraud typologies, robust feature engineering strategies, and algorithmic trade-offs.
B.1 Financial fraud typologies
The following table maps the most common financial fraud schemes—including complex compliance threats—to their defining behavioral characteristics and the optimal AI detection strategies discussed in Part 3.