Ana Sofía Gomes

João Lucas Martins, João Bravo, Ana Sofia Gomes et al.

Financial fraud is the cause of multi-billion dollar losses annually. Traditionally, fraud detection systems rely on rules due to their transparency and interpretability, key features in domains where decisions need to be explained. However, rule systems require significant input from domain experts to create and tune, an issue that rule induction algorithms attempt to mitigate by inferring rules directly from data. We explore the application of these algorithms to fraud detection, where rule systems are constrained to have a low false positive rate (FPR) or alert rate, by proposing RIFF, a rule induction algorithm that distills a low FPR rule set directly from decision trees. Our experiments show that the induced rules are often able to maintain or improve performance of the original models for low FPR tasks, while substantially reducing their complexity and outperforming rules hand-tuned by experts.

Ana Sofia Gomes, José Júlio Alferes

This work deals with the problem of combining reactive features, such as the ability to respond to events and define complex events, with the execution of transactions over general Knowledge Bases (KBs). With this as goal, we build on Transaction Logic (TR), a logic precisely designed to model and execute transactions in KBs defined by arbitrary logic theories. In it, transactions are written in a logic-programming style, by combining primitive update operations over a general KB, with the usual logic programming connectives and some additional connectives e.g. to express sequence of actions. While TR is a natural choice to deal with transactions, it remains the question whether TR can be used to express complex events, but also to deal simultaneously with the detection of complex events and the execution of transactions. In this paper we show that the former is possible while the latter is not. For that, we start by illustrating how TR can express complex events, and in particular, how SNOOP event expressions can be translated in the logic. Afterwards, we show why TR fails to deal with the two issues together, and to solve the intended problem propose Transaction Logic with Events, its syntax, model theory and executional semantics. The achieved solution is a non-monotonic extension of TR, which guarantees that every complex event detected in a transaction is necessarily responded.