Robust Financial Fraud Alerting System Based in the Cloud Environment

Publication from Digital
Forschungsgruppe Cyber Security and Defence

Branka Stojanović, Josip Božić



The digitalisation of finance influenced the emergence of new technological concepts for existing user needs. Financial technology, or fintech, provides improved services for customers and new economic value for businesses. As such, fintech services require on-demand availability on a 24/7 basis. For this reason, they are often deployed in cloud environments that allow connectivity with ubiquitous devices. This allows customers to perform online transactions, which are overseen by the respective financial institutions. However, such cloud-based systems introduce new hallenges for information security. On one hand, they represent attractive targets for cyberattacks. On the other, financial frauds can still go unnoticed by the financial institutions in charge. This paper contributes to both challenges by introducing the concept for a cloud-based system architecture for fraud detection and client profiling in the banking domain. Therefore, a systematic risk assessment was conducted in this context, and exploitation probabilities were inferred for multiple attack scenarios. In addition, formal verification was accomplished in order to determine the effects of successful vulnerability exploits. The consequences of such security violations are discussed, and considerations are given for improving the resilience of fintech systems.

Download (548 kB)

Keywords: fintech; fraud detection; cloud security; risk assessment; formal model checking; machine learning; anomaly detection