Search

Big data methods are becoming an important tool for tax fraud detection around the world. Unsupervised learning approach is the dominant framework due to the lack of label and ground truth in corresponding data sets although these methods suffer from low interpretability. HUNOD, a novel hybrid unsupervised outlier detection method for tax evasion risk management, is presented in this paper. In contrast to previous methods proposed in the literature, the HUNOD method combines two outlier detection approaches based on two different machine learning designs (i.e, clustering and representational learning) to detect and internally validate outliers in a given tax dataset. The HUNOD method allows its users to incorporate relevant domain knowledge into both constituent outlier detection approaches in order to detect outliers relevant for a given economic context. The interpretability of obtained outliers is achieved by training explainable-by-design surrogate models over results of unsupervised outlier detection methods. The experimental evaluation of the HUNOD method is conducted on two datasets derived from the database on individual personal income tax declarations collected by the Tax Administration of Serbia. The obtained results show that the method indicates between 90% and 98% internally validated outliers depending on the clustering configuration and employed regularization mechanisms for representational learning., Comment: Submitted to Elsevier journal for possible publication

Deep neural networks (DNNs) have proven to be powerful tools for processing unstructured data. However for high-dimensional data, like images, they are inherently vulnerable to adversarial attacks. Small almost invisible perturbations added to the input can be used to fool DNNs. Various attacks, hardening methods and detection methods have been introduced in recent years. Notoriously, Carlini-Wagner (CW) type attacks computed by iterative minimization belong to those that are most difficult to detect. In this work we outline a mathematical proof that the CW attack can be used as a detector itself. That is, under certain assumptions and in the limit of attack iterations this detector provides asymptotically optimal separation of original and attacked images. In numerical experiments, we experimentally validate this statement and furthermore obtain AUROC values up to 99.73% on CIFAR10 and ImageNet. This is in the upper part of the spectrum of current state-of-the-art detection rates for CW attacks.