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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

Ensuring fairness in transaction fraud detection models is vital due to the potential harms and legal implications of biased decision-making. Despite extensive research on algorithmic fairness, there is a notable gap in the study of bias in…

Machine Learning · Computer Science 2024-09-09 Parameswaran Kamalaruban , Yulu Pi , Stuart Burrell , Eleanor Drage , Piotr Skalski , Jason Wong , David Sutton

The fraud/uncollectible debt problem in the telecommunications industry presents two technical challenges: the detection and the treatment of the account given the detection. In this paper, we focus on the first problem of detection using…

Artificial Intelligence · Computer Science 2013-02-21 Kazuo J. Ezawa , Til Schuermann

The authors compared oversampling methods for the problem of multi-class topic classification. The SMOTE algorithm underlies one of the most popular oversampling methods. It consists in choosing two examples of a minority class and…

Computation and Language · Computer Science 2020-08-12 Anna Glazkova

As the financial industry becomes more interconnected and reliant on digital systems, fraud detection systems must evolve to meet growing threats. Cloud-enabled Transformer models present a transformative opportunity to address these…

Computational Engineering, Finance, and Science · Computer Science 2025-02-03 Tingting Deng , Shuochen Bi , Jue Xiao

Medicare fraud poses a substantial challenge to healthcare systems, resulting in significant financial losses and undermining the quality of care provided to legitimate beneficiaries. This study investigates the use of machine learning (ML)…

Machine Learning · Computer Science 2025-02-25 Dorsa Farahmandazad , Kasra Danesh

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

Scientific fraud is an increasingly vexing problem. Many current programs for fraud detection focus on image manipulation, while techniques for detection based on anomalous patterns that may be discoverable in the underlying numerical data…

Quantitative Methods · Quantitative Biology 2013-11-22 Joel H Pitt , Helene Z Hill

The extensive use of the internet is continuously drifting businesses to incorporate their services in the online environment. One of the first spectrums to embrace this evolution was the banking sector. In fact, the first known online…

Machine Learning · Computer Science 2020-09-15 Arianit Mehana , Krenare Pireva Nuci

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

As online fraud becomes more sophisticated and pervasive, traditional fraud detection methods are struggling to keep pace with the evolving tactics employed by fraudsters. This paper explores the transformative role of machine learning in…

Machine Learning · Computer Science 2024-10-29 Md Kamrul Hasan Chy

Money laundering is the crucial mechanism utilized by criminals to inject proceeds of crime to the financial system. The primary responsibility of the detection of suspicious activity related to money laundering is with the financial…

Machine Learning · Computer Science 2020-11-18 Utku Görkem Ketenci , Tolga Kurt , Selim Önal , Cenk Erbil , Sinan Aktürkoğlu , Hande Şerban İlhan

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

Class imbalance in a dataset is a major problem for classifiers that results in poor prediction with a high true positive rate (TPR) but a low true negative rate (TNR) for a majority positive training dataset. Generally, the pre-processing…

Machine Learning · Computer Science 2022-03-29 Anuraganand Sharma , Prabhat Kumar Singh , Rohitash Chandra

Current trends in Machine Learning prefer explainability even when it comes at the cost of performance. Therefore, explainable AI methods are particularly important in the field of Fraud Detection. This work investigates the applicability…

Risk Management · Quantitative Finance 2024-10-30 Boris Wolfson , Erman Acar

The use of credit cards has become quite common these days as digital banking has become the norm. With this increase, fraud in credit cards also has a huge problem and loss to the banks and customers alike. Normal fraud detection systems,…

Machine Learning · Computer Science 2022-06-28 Bushra Yousuf , Rejwan Bin Sulaiman , Musarrat Saberin Nipun

Providing security for information is highly critical in the current era with devices enabled with smart technology, where assuming a day without the internet is highly impossible. Fast internet at a cheaper price, not only made…

Cryptography and Security · Computer Science 2024-08-26 Sharmila S P , Aruna Tiwari , Narendra S Chaudhari

With the advent of Industry 4.0, Data Science and Explainable Artificial Intelligence (XAI) has received considerable intrest in recent literature. However, the entry threshold into XAI, in terms of computer coding and the requisite…

Artificial Intelligence · Computer Science 2020-08-12 Athar Kharal

Urban datasets such as citizen transportation modes often contain disproportionately distributed classes, posing significant challenges to the classification of under-represented samples using data-driven models. In the literature, various…

Machine Learning · Computer Science 2025-04-15 Guang An Ooi , Shehab Ahmed

Financial statement fraud detection is an important problem with a number of design aspects to consider. Issues such as (i) problem representation, (ii) feature selection, and (iii) choice of performance metrics all influence the perceived…

Cryptography and Security · Computer Science 2015-11-27 J. West , Maumita Bhattacharya
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