HQRNN-FD: A Hybrid Quantum Recurrent Neural Network for Fraud Detection
Detecting financial fraud is a critical aspect of modern intelligent financial systems. Despite the advances brought by deep learning in predictive accuracy, challenges persist-particularly in capturing complex, high-dimensional nonlinear features. This study introduces a novel hybrid quantum recurrent neural network for fraud detection (HQRNN-FD). The model utilizes variational quantum circuits (VQCs) incorporating angle encoding, data reuploading, and hierarchical entanglement to project transaction features into quantum state spaces, thereby facilitating quantum-enhanced feature extraction. For sequential analysis, the model integrates a recurrent neural network (RNN) with a self-attention mechanism to effectively capture temporal dependencies and uncover latent fraudulent patterns. To mitigate class imbalance, the synthetic minority over-sampling technique (SMOTE) is employed during preprocessing, enhancing both class representation and model generalizability. Experimental evaluations reveal that HQRNN-FD attains an accuracy of 0.972 on publicly available fraud detection datasets, outperforming conventional models by 2.4%. In addition, the framework exhibits robustness against quantum noise and improved predictive performance with increasing qubit numbers, validating its efficacy and scalability for imbalanced financial classification tasks.
Authors
- Ri‐Gui Zhou (ORCID: https://orcid.org/0000-0002-8894-8108)
- Ruiqing Xu (ORCID: https://orcid.org/0000-0001-9064-6304)
- Y.R. Zhang
- Yilin Dong (ORCID: https://orcid.org/0000-0002-4441-3355)
- Yaochong Li (ORCID: https://orcid.org/0000-0002-1474-9800)
Institutions
- Shanghai Institute of Technology (CN)
- Shanghai Maritime University (CN)
Publication Details
- Journal
- Entropy
- Published
- 2025-08-27
- DOI
- https://doi.org/10.3390/e27090906
- Citations
- 2
- Primary Topic
- Quantum Computing Algorithms and Architecture
- Type
- article
- Field-Weighted Citation Impact
- 4.96
Funders
- National Natural Science Foundation of China