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This paper discusses financial fraud detection in imbalanced dataset using homogeneous and non-homogeneous Poisson processes. The probability of predicting fraud on the financial transaction is derived. Applying our methodology to the…

Risk Management · Quantitative Finance 2019-12-11 Régis Houssou , Jérôme Bovay , Stephan Robert

Consider a binary decision making process where a single machine learning classifier replaces a multitude of humans. We raise questions about the resulting loss of diversity in the decision making process. We study the potential benefits of…

Machine Learning · Statistics 2017-07-03 Nina Grgić-Hlača , Muhammad Bilal Zafar , Krishna P. Gummadi , Adrian Weller

A common issue for classification in scientific research and industry is the existence of imbalanced classes. When sample sizes of different classes are imbalanced in training data, naively implementing a classification method often leads…

Methodology · Statistics 2021-07-02 Yang Feng , Min Zhou , Xin Tong

Class imbalance poses a significant challenge in classification tasks, where traditional approaches often lead to biased models and unreliable predictions. Undersampling and oversampling techniques have been commonly employed to address…

Machine Learning · Computer Science 2025-10-22 Matt Clifford , Jonathan Erskine , Alexander Hepburn , Raúl Santos-Rodríguez , Dario Garcia-Garcia

We propose a streaming algorithm for the binary classification of data based on crowdsourcing. The algorithm learns the competence of each labeller by comparing her labels to those of other labellers on the same tasks and uses this…

Machine Learning · Statistics 2016-02-24 Thomas Bonald , Richard Combes

Class imbalance in data presents significant challenges for classification tasks. It is fairly common and requires careful handling to obtain desirable performance. Traditional classification algorithms become biased toward the majority…

Machine Learning · Computer Science 2024-10-28 Asif Newaz , Asif Ur Rahman Adib , Taskeed Jabid

Prior work studies the question of ``fairly'' ordering transactions in a replicated state machine. Each of $n$ replicas receives transactions in a possibly different order, and the system must aggregate the observed orderings into a single…

Cryptography and Security · Computer Science 2024-10-02 Geoffrey Ramseyer , Ashish Goel

Machine learning offers potential solutions to current issues in industrial systems in areas such as quality control and predictive maintenance, but also faces unique barriers in industrial applications. An ongoing challenge is extreme…

Machine Learning · Computer Science 2026-01-15 Lesley Wheat , Martin v. Mohrenschildt , Saeid Habibi

Credit card fraud detection is a very challenging problem because of the specific nature of transaction data and the labeling process. The transaction data is peculiar because they are obtained in a streaming fashion, they are strongly…

Machine Learning · Computer Science 2018-04-23 Fabirzio Carcillo , Yann-Aël Le Borgne , Olivier Caelen , Gianluca Bontempi

Qualitative probabilistic reasoning in a Bayesian network often reveals tradeoffs: relationships that are ambiguous due to competing qualitative influences. We present two techniques that combine qualitative and numeric probabilistic…

Artificial Intelligence · Computer Science 2013-02-01 Chao-Lin Liu , Michael P. Wellman

Despite the widespread use of machine learning algorithms to solve problems of technological, economic, and social relevance, provable guarantees on the performance of these data-driven algorithms are critically lacking, especially when the…

Machine Learning · Computer Science 2019-03-18 Abed AlRahman Al Makdah , Vaibhav Katewa , Fabio Pasqualetti

We consider the problem of sequential evaluation, in which an evaluator observes candidates in a sequence and assigns scores to these candidates in an online, irrevocable fashion. Motivated by the psychology literature that has studied…

Machine Learning · Statistics 2023-11-20 Jingyan Wang , Ashwin Pananjady

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

Many real world data mining applications involve obtaining predictive models using data sets with strongly imbalanced distributions of the target variable. Frequently, the least common values of this target variable are associated with…

Machine Learning · Computer Science 2015-05-14 Paula Branco , Luis Torgo , Rita Ribeiro

Fraud detection remains a critical task in high-stakes domains such as finance and e-commerce, where undetected fraudulent transactions can lead to significant economic losses. In this study, we systematically compare the performance of…

Machine Learning · Computer Science 2025-09-19 Chao Wang , Chuanhao Nie , Yunbo Liu

Class imbalance poses new challenges when it comes to classifying data streams. Many algorithms recently proposed in the literature tackle this problem using a variety of data-level, algorithm-level, and ensemble approaches. However, there…

Machine Learning · Computer Science 2023-07-19 Gabriel Aguiar , Bartosz Krawczyk , Alberto Cano

Network traffic data is huge, varying and imbalanced because various classes are not equally distributed. Machine learning (ML) algorithms for traffic analysis uses the samples from this data to recommend the actions to be taken by the…

Networking and Internet Architecture · Computer Science 2013-11-13 Raman Singh , Harish Kumar , R. K. Singla

Network Intrusion Detection Systems (IDS) have become increasingly important as networks become more vulnerable to new and sophisticated attacks. Machine Learning (ML)-based IDS are increasingly seen as the most effective approach to handle…

Cryptography and Security · Computer Science 2025-02-14 Shrihari Vasudevan , Ishan Chokshi , Raaghul Ranganathan , Nachiappan Sundaram

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 studies binary logistic regression for rare events data, or imbalanced data, where the number of events (observations in one class, often called cases) is significantly smaller than the number of nonevents (observations in the…

Machine Learning · Statistics 2020-06-02 HaiYing Wang