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Credit card fraud detection is a critical challenge in the financial sector, demanding sophisticated approaches to accurately identify fraudulent transactions. This research proposes an innovative methodology combining Neural Networks (NN)…

Computational Engineering, Finance, and Science · Computer Science 2024-05-02 Mengran Zhu , Ye Zhang , Yulu Gong , Changxin Xu , Yafei Xiang

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…

Machine Learning · Computer Science 2021-12-07 Daniel H. M. de Souza , Claudio J. Bordin

Financial fraud detection is an important problem with a number of design aspects to consider. Issues such as algorithm selection and performance analysis will affect the perceived ability of proposed solutions, so for auditors and…

Cryptography and Security · Computer Science 2016-01-07 J. West , Maumita Bhattacharya

The credit card has become the most popular payment method for both online and offline transactions. The necessity to create a fraud detection algorithm to precisely identify and stop fraudulent activity arises as a result of both the…

Artificial Intelligence · Computer Science 2023-03-14 AlsharifHasan Mohamad Aburbeian , Huthaifa I. Ashqar

For the highly imbalanced credit card fraud detection problem, most existing methods either use data augmentation methods or conventional machine learning models, while neural network-based anomaly detection approaches are lacking.…

Machine Learning · Computer Science 2022-06-30 Tungyu Wu , Youting Wang

This study critically examines the methodological rigor in credit card fraud detection research, revealing how fundamental evaluation flaws can overshadow algorithmic sophistication. Through deliberate experimentation with improper…

Machine Learning · Computer Science 2025-11-11 Khizar Hayat , Baptiste Magnier

Machine learning has automated much of financial fraud detection, notifying firms of, or even blocking, questionable transactions instantly. However, data imbalance starves traditionally trained models of the content necessary to detect…

Machine Learning · Computer Science 2019-09-06 Samuel Showalter , Zhixin Wu

Credit card fraud causes significant financial losses and frequently occurs as fraud attack, defined as short-term sequence of fraudulent transactions associated with high transaction rates and amounts, business areas historically tied to…

Optimization and Control · Mathematics 2025-03-27 Alexander Stotsky

This systematic literature review examines the role of machine learning in fraud detection within digital banking, synthesizing evidence from 118 peer-reviewed studies and institutional reports. Following the PRISMA guidelines, the review…

Machine Learning · Computer Science 2025-10-08 Md Zahin Hossain George , Md Khorshed Alam , Md Tarek Hasan

The application of machine learning to support the processing of large datasets holds promise in many industries, including financial services. However, practical issues for the full adoption of machine learning remain with the focus being…

Machine Learning · Computer Science 2021-05-14 Ismini Psychoula , Andreas Gutmann , Pradip Mainali , S. H. Lee , Paul Dunphy , Fabien A. P. Petitcolas

Financial fraud is an issue with far reaching consequences in the finance industry, government, corporate sectors, and for ordinary consumers. Increasing dependence on new technologies such as cloud and mobile computing in recent years has…

Cryptography and Security · Computer Science 2015-10-27 J. West , Maumita Bhattacharya , R. Islam

Credit card fraud remains a significant challenge due to class imbalance and fraudsters mimicking legitimate behavior. This study evaluates five machine learning models - Logistic Regression, Random Forest, XGBoost, K-Nearest Neighbors…

Machine Learning · Computer Science 2025-09-19 Iva Popova , Hamza A. A. Gardi

Often the challenge associated with tasks like fraud and spam detection is the lack of all likely patterns needed to train suitable supervised learning models. This problem accentuates when the fraudulent patterns are not only scarce, they…

Machine Learning · Computer Science 2019-05-08 Utkarsh Porwal , Smruthi Mukund

Card transaction fraud is a growing problem affecting card holders worldwide. Financial institutions increasingly rely upon data-driven methods for developing fraud detection systems, which are able to automatically detect and block…

Applications · Statistics 2020-05-07 Sebastiaan Höppner , Bart Baesens , Wouter Verbeke , Tim Verdonck

This paper addresses the problem of unsupervised approach of credit card fraud detection in unbalanced dataset using the ARIMA model. The ARIMA model is fitted on the regular spending behaviour of the customer and is used to detect fraud if…

Cryptography and Security · Computer Science 2020-09-17 Giulia Moschini , Régis Houssou , Jérôme Bovay , Stephan Robert-Nicoud

Fraud detection systems (FDS) mainly perform two tasks: (i) real-time detection while the payment is being processed and (ii) posterior detection to block the card retrospectively and avoid further frauds. Since human verification is often…

Machine Learning · Computer Science 2022-04-12 Van Bach Nguyen , Kanishka Ghosh Dastidar , Michael Granitzer , Wissam Siblini

With growing credit card transaction volumes, the fraud percentages are also rising, including overhead costs for institutions to combat and compensate victims. The use of machine learning into the financial sector permits more effective…

Machine Learning · Computer Science 2022-08-26 Gayan K. Kulatilleke , Sugandika Samarakoon

Credit card fraud incurs a considerable cost for both cardholders and issuing banks. Contemporary methods apply machine learning-based classifiers to detect fraudulent behavior from labeled transaction records. But labeled data are usually…

Machine Learning · Computer Science 2024-12-25 Sheng Xiang , Mingzhi Zhu , Dawei Cheng , Enxia Li , Ruihui Zhao , Yi Ouyang , Ling Chen , Yefeng Zheng

In recent years, the unprecedented growth in digital payments fueled consequential changes in fraud and financial crimes. In this new landscape, traditional fraud detection approaches such as rule-based engines have largely become…

Machine Learning · Computer Science 2021-03-03 E. Kurshan , H. Shen , H. Yu

Credit card fraud is a major cause of national concern in the Nigerian financial sector, affecting hundreds of transactions per second and impacting international ecommerce negatively. Despite the rapid spread and adoption of online…

Machine Learning · Computer Science 2024-07-15 Jennifer Onyeama