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Detection of credit card fraud is an acute issue of financial security because transaction datasets are highly lopsided, with fraud cases being only a drop in the ocean. Balancing datasets using the most popular methods of traditional…

Machine Learning · Computer Science 2025-09-25 Kashaf Ul Emaan

This paper investigates whether hybrid quantum-classical machine learning can deliver practical improvements in financial fraud detection performance for card-based and other payment transactions. Building on a Guided Quantum Compressor…

Quantum Physics · Physics 2026-05-05 Rodrigo Chaves , Kunal Kumar , Bruno Chagas , Rory Linerud , Brannen Sorem , Javier Mancilla , Bryn Bell

The number of credit card fraud has been growing as technology grows and people can take advantage of it. Therefore, it is very important to implement a robust and effective method to detect such frauds. The machine learning algorithms are…

Machine Learning · Computer Science 2022-06-14 Sairamvinay Vijayaraghavan , Terry Guan , Jason , Song

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

This paper presents a first end-to-end application of a Quantum Support Vector Machine (QSVM) algorithm for a classification problem in the financial payment industry using the IBM Safer Payments and IBM Quantum Computers via the Qiskit…

We present a novel hybrid quantum-classical neural network architecture for fraud detection that integrates a classical Long Short-Term Memory (LSTM) network with a variational quantum circuit. By leveraging quantum phenomena such as…

Quantum Physics · Physics 2025-05-02 Rushikesh Ubale , Sujan K. K. , Sangram Deshpande , Gregory T. Byrd

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

Expert systems often operate in domains characterized by class-imbalanced tabular data, where detecting rare but critical instances is essential for safety and reliability. While conventional approaches, such as cost-sensitive learning,…

Machine Learning · Computer Science 2025-06-23 Md Abrar Jahin , Adiba Abid , M. F. Mridha

Class imbalance remains a critical challenge in machine learning (ML), particularly in the medical domain, where underrepresented minority classes lead to biased models and reduced predictive performance. This study introduces…

Machine Learning · Computer Science 2025-09-04 Vikas Kashtriya , Pardeep Singh

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

Designing effective quantum models for real-world tasks remains a key challenge within Quantum Machine Learning (QML), particularly in applications such as credit card fraud detection, where extreme class imbalance and evolving attack…

Quantum Physics · Physics 2025-09-01 Nouhaila Innan , Akshat Singh , Muhammad Shafique

The expansion of digital payment systems has heightened both the scale and intricacy of online financial transactions, thereby increasing vulnerability to fraudulent activities. Detecting fraud effectively is complicated by the changing…

Machine Learning · Computer Science 2026-04-10 Ranya Batsyas , Ritesh Yaduwanshi

This research introduces an innovative method for identifying credit card fraud by combining the SMOTE-KMEANS technique with an ensemble machine learning model. The proposed model was benchmarked against traditional models such as logistic…

Machine Learning · Computer Science 2025-03-28 Yuhan Wang

Detecting fraudulent credit card transactions remains a significant challenge, due to the extreme class imbalance in real-world data and the often subtle patterns that separate fraud from legitimate activity. Existing research commonly…

Machine Learning · Computer Science 2025-07-22 Claudio Giusti , Luca Guarnera , Mirko Casu , Sebastiano Battiato

The paper proposes the Quantum-SMOTE method, a novel solution that uses quantum computing techniques to solve the prevalent problem of class imbalance in machine learning datasets. Quantum-SMOTE, inspired by the Synthetic Minority…

Quantum Physics · Physics 2025-03-31 Nishikanta Mohanty , Bikash K. Behera , Christopher Ferrie , Pravat Dash

Credit card fraud detection is a critical task in financial security, as fraudulent transactions are rare, highly imbalanced, and often resemble legitimate ones. A wide range of classical machine learning methods, as well as more recent…

Quantum Physics · Physics 2025-12-16 Mansour El Alami , Adam Innan , Nouhaila Innan , Muhammad Shafique , Mohamed Bennai

In this study, we employ Generative Adversarial Networks as an oversampling method to generate artificial data to assist with the classification of credit card fraudulent transactions. GANs is a generative model based on the idea of game…

Machine Learning · Computer Science 2019-07-09 Hung Ba

Imbalanced datasets pose a difficulty in fraud detection, as classifiers are often biased toward the majority class and perform poorly on rare fraudulent transactions. Synthetic data generation is therefore commonly used to mitigate this…

Machine Learning · Statistics 2026-05-01 En-Ya Kuo , Sebastien Motsch

Churn prediction in credit cards, fraud detection in insurance, and loan default prediction are important analytical customer relationship management (ACRM) problems. Since frauds, churns and defaults happen less frequently, the datasets…

Machine Learning · Computer Science 2022-02-11 Prateek Kate , Vadlamani Ravi , Akhilesh Gangwar

As financial fraud becomes increasingly complex, effective detection methods are essential. Quantum Machine Learning (QML) introduces certain capabilities that may enhance both accuracy and efficiency in this area. This study examines how…

Quantum Physics · Physics 2026-02-12 Mansour El Alami , Nouhaila Innan , Muhammad Shafique , Mohamed Bennai
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