MUMBAI, India, June 22 -- Intellectual Property India has published a patent application (202641062968 A) filed by Mr. Mudimela Madhusudhan; and Mr. Pramoda Patro on May 18, 2026, for A Method For Explainable Real-Time Fraud Detection In Financial Transaction Systems.
Inventors include Mr. Mudimela Madhusudhan; and Mr. Pramoda Patro.
The application for the patent was published on June 12, 2026, under issue no. 24/2026.
Abstract: The present invention relates to a method and system for adaptive fraud detection in financial transaction systems using artificial intelligence, graph-based analytics, causal inference, temporal event modeling, and explainable decision-making mechanisms. The invention receives transaction data from financial transaction sources including banking systems, payment gateways, digital wallets, and cryptocurrency networks, and constructs a dynamic transaction graph representing relationships among transaction entities. A graph-based diffusion and counterfactual calibration mechanism generates fraud risk embeddings by identifying hidden transactional dependencies and suspicious fraud propagation patterns. The generated embeddings are processed using a Hawkes process-augmented transformer architecture configured to detect temporal fraud bursts and coordinated fraudulent activities. An optimal transport-based regime adaptation mechanism handles concept drift and changing transaction distributions arising from evolving fraud behaviors and operational conditions. The invention further employs a graph neural ordinary differential equation framework integrated with regulatory constraint projection mechanisms for generating continuous-time fraud representations and explainable compliance- aware fraud decisions. A Bayesian adaptive decision policy determines transaction handling actions including approval, review, suspension, or blocking based on fraud risk, operational cost, and fairness constraints. The invention provides improved fraud detection accuracy, reduced false-positive rates, enhanced adaptability to emerging fraud schemes, explainable fraud decision-making, and scalable real-time deployment capability for modern financial transaction environments.
Disclaimer: Curated by HT Syndication.
