Fraud Detection with a Stacked Auto Encoder with Embedding

An improved apparatus for detecting fraud, the improved apparatus comprising:

• a rail transceiver;
• memory;
• a processor connected to the rail transceiver and the memory, wherein the processor operates model tuning software and transaction review software;
• the processor receives a transaction from the rail transceiver and stores the transaction in the memory;
• the model tuning software views the transaction in the memory and tunes an artificial neural network model with the transaction;
• and
• the transaction review software processes the transaction through the artificial neural network model, converts the transaction into a feature vector, encodes the feature vector into a compressed vector, decodes the compressed vector into a reconstructed vector, subtracts the reconstructed vector from the feature vector, and determines a fraud indication based on a difference from the reconstructed vector from the feature vector.