Research Article Applying Extensions of Evidence Theory to Detect Frauds in Financial Infrastructures Luigi Coppolino, Salvatore D’Antonio, Valerio Formicola, and Luigi Romano Department of Engineering, University of Naples “Parthenope”, Centro Direzionale, Isola C4, 80143 Naples, Italy CorrespondenceshouldbeaddressedtoValerioFormicola;valerio.formicola@uniparthenope.it Received15May2015;Revised23September2015;Accepted30September2015 AcademicEditor:NarayanaswamyBalakrishnan Copyright © 2015 Luigi Coppolino et al. hisisanopenaccessarticledistributedundertheCreativeCommonsAttributionLicense, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. he Dempster-Shafer (DS) theory of evidence has signiicant weaknesses when dealing with conlicting information sources, as demonstratedbypreeminentmathematicians. hisproblemmayinvalidateitsefectivenesswhenitisusedtoimplementdecision- making tools that monitor a great number of parameters and metrics. Indeed, in this case, very diferent estimations are likely to happen and can produce unfair and biased results. In order to solve these laws, a number of amendments and extensions of the initial DS model have been proposed in literature. In this work, we present a Fraud Detection System that classiies transactions in a Mobile Money Transfer infrastructure by using the data fusion algorithms derived from these new models. We tested it in a simulated environment that closely mimics a real Mobile Money Transfer infrastructure and its actors. Results show substantial improvementsoftheperformanceintermsoftruepositiveandfalsepositiverateswithrespecttotheclassicalDStheory. 1. Introduction Nowadays, mobile communication networks represent a key enabling infrastructure for inancial service provision since they ofer signiicant opportunities for increasing the eiciency and pervasiveness of such services by expand- ing access and lowering transaction costs. Mobile inancial services are currently applied to several banking products, such as deposit and transact products, over-the-counter bill payments, saving products, intracountry remittances, and international remittances. In this paper, we focus on Mobile Money Transfer (MMT) services which allow using virtual money in order to carry out payments, money transfers, and transactions through mobile devices. Suchservicesareanincreasinglyimportantandcommon payment means in many markets due to the pervasive use of mobile phones, the steady growth in remittances, and the needforanelectronicperson-to-personpaymentthatmaybe analternativeandreliableoptiontopaper-basedmechanisms likecashandchecks[1]. he growing coverage of cellular networks as well as the increasing availability of mobile communication services is enabling the widespread adoption of mobile-based inancial servicesespeciallyindevelopingcountries,likeKenya,India, Uganda, and the Philippines, thus creating the opportunity for a signiicant proliferation of mobile commerce services as well as for an expanding inancial inclusion. It is expected thatinthosecountriesmostmobile inancialtransactionswill concern MMT services in the near term since “unbanked” people, that is, people who do not have their own bank accounts, will be attracted by inancial services allowing for performing payments and remittances by simply using a mobile phone. he same phenomenon is being observed in developed countries where citizens are becoming unbanked due to the widespread economic crisis, and inancial service providers are beginning to investigate the potential for adopting these newer payment systems that are emerging in less developed countries in order to meet inancial needs of customers. However, as the mobile inancial services market grows, the risks related to the use of mobile phone-based payments increase, since MMT services become the target of more skilled and motivated attackers, and the amazing volume of data impairs the ability of the control mechanisms to timely spot frauds. In one case, a supplier of Mobile Money services lost $3.5 million due to a single type of fraud. Like any other money transfer service, an MMT service is vulnerable to a number of misuses, including money Hindawi Publishing Corporation International Journal of Distributed Sensor Networks Volume 2015, Article ID 980629, 16 pages http://dx.doi.org/10.1155/2015/980629