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Today, machine learning is applied in almost any field. In machine learning, where there are numerous methods, classification is one of the most basic and crucial ones. Various problems can be solved by classification. The feature selection…

Machine Learning · Computer Science 2022-07-01 Ahmet Tuğrul Bayrak

Categorical variables often appear in datasets for classification and regression tasks, and they need to be encoded into numerical values before training. Since many encoders have been developed and can significantly impact performance,…

Machine Learning · Computer Science 2024-01-19 Wenbin Zhu , Runwen Qiu , Ying Fu

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

This paper presents the key algorithmic techniques behind CatBoost, a new gradient boosting toolkit. Their combination leads to CatBoost outperforming other publicly available boosting implementations in terms of quality on a variety of…

Machine Learning · Computer Science 2019-01-23 Liudmila Prokhorenkova , Gleb Gusev , Aleksandr Vorobev , Anna Veronika Dorogush , Andrey Gulin

In the era of the digitally driven economy, where there has been an exponential surge in digital payment systems and other online activities, various forms of fraudulent activities have accompanied the digital growth, out of which credit…

Machine Learning · Computer Science 2025-09-23 Ganesh Khekare , Shivam Sunda , Yash Bothra

In the context of the Classification and Regression Trees (CART) algorithm, the efficient splitting of categorical features using standard criteria like GINI and Entropy is well-established. However, using the Mean Absolute Error (MAE)…

Machine Learning · Computer Science 2025-11-12 Peng Yu , Yike Chen , Chao Xu , Albert Bifet , Jesse Read

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

Credit scoring is vital in the financial industry, assessing the risk of lending to credit card applicants. Traditional credit scoring methods face challenges with large datasets and data imbalance between creditworthy and non-creditworthy…

Computational Engineering, Finance, and Science · Computer Science 2024-09-26 Kejian Tong , Zonglin Han , Yanxin Shen , Yujian Long , Yijing Wei

This study addresses the actual behavior of the credit-card fraud detection environment where financial transactions containing sensitive data must not be amassed in an enormous amount to conduct learning. We introduce a new adaptive…

Machine Learning · Computer Science 2021-08-09 Armin Sadreddin , Samira Sadaoui

Traditional approaches for learning on categorical data underexploit the dependencies between columns (\aka fields) in a dataset because they rely on the embedding of data points driven alone by the classification/regression loss. In…

Machine Learning · Computer Science 2023-07-19 Zhibin Li , Piotr Koniusz , Lu Zhang , Daniel Edward Pagendam , Peyman Moghadam

Card payment fraud is a serious problem, and a roadblock for an optimally functioning digital economy, with cards (Debits and Credit) being the most popular digital payment method across the globe. Despite the occurrence of fraud could be…

Cryptography and Security · Computer Science 2020-12-01 Bemali Wickramanayake , Dakshi Kapugama Geeganage , Chun Ouyang , Yue Xu

Several cybersecurity domains, such as ransomware detection, forensics and data analysis, require methods to reliably identify encrypted data fragments. Typically, current approaches employ statistics derived from byte-level distribution,…

Cryptography and Security · Computer Science 2021-04-01 Fabio De Gaspari , Dorjan Hitaj , Giulio Pagnotta , Lorenzo De Carli , Luigi V. Mancini

Credit card fraud detection (CCFD) is a critical application of Machine Learning (ML) in the financial sector, where accurately identifying fraudulent transactions is essential for mitigating financial losses. ML models have demonstrated…

Cryptography and Security · Computer Science 2025-08-21 Jan Lum Fok , Qingwen Zeng , Shiping Chen , Oscar Fawkes , Huaming Chen

Credit card fraud has significant implications at both an individual and societal level, making effective prevention essential. Current methods rely heavily on feature engineering and labeled information, both of which have significant…

Machine Learning · Computer Science 2024-07-18 Kristófer Reynisson , Marco Schreyer , Damian Borth

Target encoding is an effective encoding technique of categorical variables and is often used in machine learning systems for processing tabular data sets with mixed numeric and categorical variables. Recently en enhanced version of this…

Machine Learning · Computer Science 2020-11-24 Michael Larionov

High-cardinality categorical variables are variables for which the number of different levels is large relative to the sample size of a data set, or in other words, there are few data points per level. Machine learning methods can have…

Machine Learning · Computer Science 2023-07-06 Fabio Sigrist

We propose a method to reduce the complexity of Generalized Linear Models in the presence of categorical predictors. The traditional one-hot encoding, where each category is represented by a dummy variable, can be wasteful, difficult to…

Machine Learning · Statistics 2021-10-20 Emilio Carrizosa , Marcela Galvis Restrepo , Dolores Romero Morales

We present a technique for clustering categorical data by generating many dissimilarity matrices and averaging over them. We begin by demonstrating our technique on low dimensional categorical data and comparing it to several other…

Machine Learning · Statistics 2017-09-20 Saeid Amiri , Bertrand Clarke , Jennifer Clarke

Credit scoring is a rapidly expanding analytical technique used by banks and other financial institutions. Academic studies on credit scoring provide a range of classification techniques used to differentiate between good and bad borrowers.…

Machine Learning · Computer Science 2020-10-27 Hamidreza Arian , Seyed Mohammad Sina Seyfi , Azin Sharifi

In extreme classification problems, learning algorithms are required to map instances to labels from an extremely large label set. We build on a recent extreme classification framework with logarithmic time and space, and on a general…

Machine Learning · Computer Science 2018-12-13 Itay Evron , Edward Moroshko , Koby Crammer