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| Main Authors: | , , , , , , |
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| Format: | Preprint |
| Published: |
2026
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2603.06473 |
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| _version_ | 1866917453837107200 |
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| author | Chaves, Rodrigo Kumar, Kunal Chagas, Bruno Linerud, Rory Sorem, Brannen Mancilla, Javier Bell, Bryn |
| author_facet | Chaves, Rodrigo Kumar, Kunal Chagas, Bruno Linerud, Rory Sorem, Brannen Mancilla, Javier Bell, Bryn |
| contents | This paper investigates whether hybrid quantum-classical machine learning can deliver practical improvements in financial fraud detection performance for card-based and other payment transactions. Building on a Guided Quantum Compressor architecture, the approach integrates an autoencoder, a variational quantum circuit, and a classical neural head, and then embeds this hybrid model into a mixture-of-experts framework including a state-of-the-art gradient-boosted tree classifier. Using a European credit card dataset with severe class imbalance, the routed hybrid architecture with 0.6 threshold achieves average precision scores of $0.793\pm0.085$ compared to $0.770\pm0.096$ of XGBoost on 3 repeated 5-fold cross-validation benchmarks. Precision and recall comparisons reveals a possible trade-off of fraud and nominal detections with a reduction in false positives at the cost of a small reduction in fraud detections. The improvements are achieved while adding only 7 to 21 minutes of extra inference time depending on the choice of hyperparameters. These results indicate that selectively routing transactions to quantum-classical models can enhance fraud detection while remaining compatible with the latency and operational constraints of modern financial institutions. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2603_06473 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | A Mixture-of-Experts Framework for Practical Hybrid-Quantum Models in Credit Card Fraud Detection Chaves, Rodrigo Kumar, Kunal Chagas, Bruno Linerud, Rory Sorem, Brannen Mancilla, Javier Bell, Bryn Quantum Physics This paper investigates whether hybrid quantum-classical machine learning can deliver practical improvements in financial fraud detection performance for card-based and other payment transactions. Building on a Guided Quantum Compressor architecture, the approach integrates an autoencoder, a variational quantum circuit, and a classical neural head, and then embeds this hybrid model into a mixture-of-experts framework including a state-of-the-art gradient-boosted tree classifier. Using a European credit card dataset with severe class imbalance, the routed hybrid architecture with 0.6 threshold achieves average precision scores of $0.793\pm0.085$ compared to $0.770\pm0.096$ of XGBoost on 3 repeated 5-fold cross-validation benchmarks. Precision and recall comparisons reveals a possible trade-off of fraud and nominal detections with a reduction in false positives at the cost of a small reduction in fraud detections. The improvements are achieved while adding only 7 to 21 minutes of extra inference time depending on the choice of hyperparameters. These results indicate that selectively routing transactions to quantum-classical models can enhance fraud detection while remaining compatible with the latency and operational constraints of modern financial institutions. |
| title | A Mixture-of-Experts Framework for Practical Hybrid-Quantum Models in Credit Card Fraud Detection |
| topic | Quantum Physics |
| url | https://arxiv.org/abs/2603.06473 |