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arXiv · 2112.02627

Ensemble and Mixed Learning Techniques for Credit Card Fraud Detection

Daniel H. M. de Souza·Claudio J. Bordin Jr
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Abstract

Spurious credit card transactions are a significant source of financial losses and urge the development of accurate fraud detection algorithms. In this paper, we use machine learning strategies for such an aim. First, we apply a mixed learning technique that uses K-means preprocessing before trained classification to the problem at hand. Next, we introduce an adapted detector ensemble technique that uses OR-logic algorithm aggregation to enhance the detection rate. Then, both strategies are deployed in tandem in numerical simulations using real-world transactions data. We observed from simulation results that the proposed methods diminished computational cost and enhanced performance concerning state-of-the-art techniques.

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Daniel H. M. de Souza, Claudio J. Bordin Jr. 2021-12-05. Ensemble and Mixed Learning Techniques for Credit Card Fraud Detection. https://arxiv.org/abs/2112.02627

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