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Related papers: Adaptive Financial Fraud Detection in Imbalanced D…

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The UK anti-fraud charity Fraud Advisory Panel (FAP) in their review of 2016 estimates business costs of fraud at 144 billion, and its individual counterpart at 9.7 billion. Banking, insurance, manufacturing, and government are the most…

Machine Learning · Computer Science 2022-05-11 Tuan Tran

To produce important investment decisions, investors require financial records and economic information. However, most companies manipulate investors and financial institutions by inflating their financial statements. Fraudulent Financial…

Neural and Evolutionary Computing · Computer Science 2022-11-28 Peyman Mohammadzadeh germi , Mohsen Najarbashi

Imbalanced data set is a problem often found and well-studied in financial industry. In this paper, we reviewed and compared some popular methodologies handling data imbalance. We then applied the under-sampling/over-sampling methodologies…

Machine Learning · Statistics 2021-04-07 Lian Yu , Nengfeng Zhou

This paper studies how insurers can chose which claims to investigate for fraud. Given a prediction model, typically only claims with the highest predicted propability of being fraudulent are investigated. We argue that this can lead to…

Machine Learning · Statistics 2025-09-24 Christos Revelas , Otilia Boldea , Bas J. M. Werker

Credit cards play an exploding role in modern economies. Its popularity and ubiquity have created a fertile ground for fraud, assisted by the cross boarder reach and instantaneous confirmation. While transactions are growing, the fraud…

Cryptography and Security · Computer Science 2022-08-24 Gayan K. Kulatilleke

The analysis of panel count data has garnered considerable attention in the literature, leading to the development of multiple statistical techniques. In inferential analysis, most works focus on leveraging estimating equation-based…

Methodology · Statistics 2025-10-08 Udita Goswami , Shuvashree Mondal

Credit card fraud has emerged as major problem in the electronic payment sector. In this survey, we study data-driven credit card fraud detection particularities and several machine learning methods to address each of its intricate…

Machine Learning · Computer Science 2020-10-14 Yvan Lucas , Johannes Jurgovsky

This study proposes a method for imbalanced data classification based on deep probabilistic graphical models (DPGMs) to solve the problem that traditional methods have insufficient learning ability for minority class samples. To address the…

Machine Learning · Computer Science 2025-04-09 Yujia Lou , Jie Liu , Yuan Sheng , Jiawei Wang , Yiwei Zhang , Yaokun Ren

Guaranteeing the security of transactional systems is a crucial priority of all institutions that process transactions, in order to protect their businesses against cyberattacks and fraudulent attempts. Adversarial attacks are novel…

Cryptography and Security · Computer Science 2021-01-21 Francesco Cartella , Orlando Anunciacao , Yuki Funabiki , Daisuke Yamaguchi , Toru Akishita , Olivier Elshocht

While E-commerce has been growing explosively and online shopping has become popular and even dominant in the present era, online transaction fraud control has drawn considerable attention in business practice and academic research.…

Artificial Intelligence · Computer Science 2019-07-30 Junxuan Li , Yung-wen Liu , Yuting Jia , Jay Nanduri

Traditional machine learning models often prioritize predictive accuracy, often at the expense of model transparency and interpretability. The lack of transparency makes it difficult for organizations to comply with regulatory requirements…

Machine Learning · Computer Science 2025-05-16 Fahad Almalki , Mehedi Masud

Standardized datasets and benchmarks have spurred innovations in computer vision, natural language processing, multi-modal and tabular settings. We note that, as compared to other well researched fields, fraud detection has unique…

Machine Learning · Computer Science 2023-09-26 Prince Grover , Julia Xu , Justin Tittelfitz , Anqi Cheng , Zheng Li , Jakub Zablocki , Jianbo Liu , Hao Zhou

In recent years, financial fraud detection systems have become very efficient at detecting fraud, which is a major threat faced by e-commerce platforms. Such systems often include machine learning-based algorithms aimed at detecting and…

Cryptography and Security · Computer Science 2023-12-05 Chen Doytshman , Satoru Momiyama , Inderjeet Singh , Yuval Elovici , Asaf Shabtai

This paper evaluates XGboost's performance given different dataset sizes and class distributions, from perfectly balanced to highly imbalanced. XGBoost has been selected for evaluation, as it stands out in several benchmarks due to its…

Machine Learning · Computer Science 2023-03-28 Gissel Velarde , Anindya Sudhir , Sanjay Deshmane , Anuj Deshmunkh , Khushboo Sharma , Vaibhav Joshi

Institutions are increasingly relying on machine learning models to identify and alert on abnormal events, such as fraud, cyber attacks and system failures. These alerts often need to be manually investigated by specialists. Given the…

Machine Learning · Computer Science 2021-11-02 Parisa Hassanzadeh , Danial Dervovic , Samuel Assefa , Prashant Reddy , Manuela Veloso

A major challenge when trying to detect fraud is that the fraudulent activities form a minority class which make up a very small proportion of the data set. In most data sets, fraud occurs in typically less than 0.5% of the cases. Detecting…

Machine Learning · Computer Science 2020-03-27 Bart Baesens , Sebastiaan Höppner , Irene Ortner , Tim Verdonck

Online transaction fraud presents substantial challenges to businesses and consumers, risking significant financial losses. Conventional rule-based systems struggle to keep pace with evolving fraud tactics, leading to high false positive…

Risk Management · Quantitative Finance 2024-02-20 Catayoun Azarm , Erman Acar , Mickey van Zeelt

We consider forecasting the latent rate profiles of a time series of inhomogeneous Poisson processes. The work is motivated by operations management of queueing systems, in particular, telephone call centers, where accurate forecasting of…

Applications · Statistics 2008-07-28 Haipeng Shen , Jianhua Z. Huang

With an upsurge in financial accounting fraud in the current economic scenario experienced, financial accounting fraud detection (FAFD) has become an emerging topic of great importance for academic, research and industries. The failure of…

Computers and Society · Computer Science 2013-09-17 Anuj Sharma , Prabin Kumar Panigrahi

On electronic game platforms, different payment transactions have different levels of risk. Risk is generally higher for digital goods in e-commerce. However, it differs based on product and its popularity, the offer type (packaged game,…

Machine Learning · Computer Science 2017-09-21 Bokai Cao , Mia Mao , Siim Viidu , Philip S. Yu