A Unified System for Intelligent Financial Fraud Detection

Published in: Proceedings of the 7th National HBCU Blockchain, FinTech, and AI Conference
Conference: 7th National HBCU Blockchain, FinTech, and AI Conference
Conference Location: Nashville, Tennessee
Date of Conference: November 8–10, 2026
Publisher: National Center for the Study of Blockchain and FinTech, Morgan State University

Published: 2026
Publication Type: Full Paper
Pages: 38-50
Paper ID: 3

Author(s)

Vojislav Stojkovic
Morgan State University

Abstract

Modern financial ecosystems require real-time, transparent, and trustworthy fraud detection systems capable of processing massive transaction volumes while meeting regulatory and auditing requirements. This paper presents a unified, modular system integrating four layers: (a) a blockchain-based transaction logging mechanism, (b) an explainable artificial intelligence (XAI) fraud detection engine, (c) a Mistral large language model (LLM) client for natural-language reasoning, and (d) an AI agent for orchestration. A Python-based prototype demonstrates the complete pipeline—from transaction ingestion to fraud scoring, explanation generation, and immutable blockchain storage. The system serves as an educational and experimental platform for research and development, offering flexibility and extensibility for future enhancements.

Keywords: financial fraud detection, explainable AI, Mistral large language models, AI agents.

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Recommended Citation:

Stojkovic, V. (2026). A Unified System for Intelligent Financial Fraud Detection. In Proceedings of the 7th National HBCU Blockchain, FinTech, and AI Conference (pp. 38-50). National Center for the Study of Blockchain and FinTech, Morgan State University.