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Complex systems, represented as dynamic networks, comprise of components that influence each other via direct and/or indirect interactions. Recent research has shown the importance of using Higher-Order Networks (HONs) for modeling and analyzing such complex systems, as the typical Markovian assumption in developing the First Order Network (FON) can be limiting. This higher-order network representation not only creates a more accurate representation of the underlying complex system, but also leads to more accurate network analysis. In this paper, we first present a scalable and accurate model, BuildHON+, for higher-order network representation of data derived from a complex system with various orders of dependencies. Then, we show that this higher-order network representation modeled by BuildHON+ is significantly more accurate in identifying anomalies than FON, demonstrating a need for the higher-order network representatio