Real-time edge-to-cloud collaborative detection for mobile banking fraud
Mobile banking has been experiencing unsustainable growth in the last ten years, as the volume of digital payments worldwide is currently more than USD 8.49 trillion and is estimated to be more than USD 20 trillion by 2026. At the same time, fraudulent attacks have been directed toward mobile banking platforms to a significant extent, causing losses amounting to USD 485.6 billion worldwide alone in 2023. The current fraud detection architectures have been heavily based on a centralized cloud-based model which is inherently associated with a latency delay of between 200 to 800 milliseconds that introduces a time delay that advanced attackers can use to transact fraudulent transactions before the defensive countermeasures are activated. The paper will suggest a new Edge-to-Cloud Collaborative Fraud Detection (EC-CFD) model that allocates inference workloads to three hierarchical levels. The structure is a combination of differential privacy, mutual authentication, and federated learning to allow joints in improving the model without having to centralize sensitive financial information. The feature engineering has 18 dimensions which include transaction statistics, geo-location anomalies, device fingerprinting and behavioral biometrics. Synthetic dataset of 2.4 million transactions, experimented on with samples of PaySim and IEEE-CIS benchmarks on fraud detection methods to provide realistic behavioural diversification. The findings indicate that the suggested EC-CFD model is characterized by a 98.7 % detection rate of fraud, where the F1-score is 0.974 and the AUC-ROC value is 0.992. It is important to note that the hierarchical structure allows accomplishing 87.2% raw transactions at the edge level and achieves a mean detection latency of 8.3 ms. The proposed framework lowers false positives by 31.4 per cent, the average end-to-end latency by 73, and could be extended to support 50,000 active users without lowered performance, which proves the effectiveness of hierarchical edge intelligence as the primary paradigm of next-generation financial cybersecurity.