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.

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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

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article

HQRNN-FD: A Hybrid Quantum Recurrent Neural Network for Fraud Detection

Ri‐Gui Zhou, Ruiqing Xu, Y.R. Zhang, Yilin Dong et al.
2 citations
Entropy
Quantum Computing Algorithms and Architecture
4.96
article

HQRNN-FD: A Hybrid Quantum Recurrent Neural Network for Fraud Detection

Ri‐Gui Zhou, Ruiqing Xu, Y.R. Zhang, Yilin Dong, Yaochong Li
article en
2 citations

Abstract

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.

EntropyVol. 27(9)
Shanghai Institute of Technology (CN), Shanghai Maritime University (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 5%
Quantum Computing Algorithms and Architecture
4.96
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