Credit card fraudulent data is highly imbalanced, and it has presented an overwhelmingly large portion of nonfraudulent transactions and a small portion of fraudulent transactions. The measures used to judge the verac...Credit card fraudulent data is highly imbalanced, and it has presented an overwhelmingly large portion of nonfraudulent transactions and a small portion of fraudulent transactions. The measures used to judge the veracity of the detection algorithms become critical to the deployment of a model that accurately scores fraudulent transactions taking into account case imbalance, and the cost of identifying a case as genuine when, in fact, the case is a fraudulent transaction. In this paper, a new criterion to judge classification algorithms, which considers the cost of misclassification, is proposed, and several undersampling techniques are compared by this new criterion. At the same time, a weighted support vector machine (SVM) algorithm considering the financial cost of misclassification is introduced, proving to be more practical for credit card fraud detection than traditional methodologies. This weighted SVM uses transaction balances as weights for fraudulent transactions, and a uniformed weight for nonfraudulent transactions. The results show this strategy greatly improve performance of credit card fraud detection.展开更多
Credit card fraud is a wide-ranging issue for financial institutions, involving theft and fraud committed using a payment card. In this paper, we explore the application of linear and nonlinear statistical modeling an...Credit card fraud is a wide-ranging issue for financial institutions, involving theft and fraud committed using a payment card. In this paper, we explore the application of linear and nonlinear statistical modeling and machine learning models on real credit card transaction data. The models built are supervised fraud models that attempt to identify which transactions are most likely fraudulent. We discuss the processes of data exploration, data cleaning, variable creation, feature selection, model algorithms, and results. Five different supervised models are explored and compared including logistic regression, neural networks, random forest, boosted tree and support vector machines. The boosted tree model shows the best fraud detection result (FDR = 49.83%) for this particular data set. The resulting model can be utilized in a credit card fraud detection system. A similar model development process can be performed in related business domains such as insurance and telecommunications, to avoid or detect fraudulent activity.展开更多
本文针对两类个人信用数据混叠较严重的数据集,提出对数据集先利用最近邻算法进行修剪,再应用SVM算法对个人信用进行评估的NN-SVM方法。仿真实验表明基于NN-SVM算法的个人信用评估方法比直接用SVM算法进行分析来的更加准确。同时,对比RB...本文针对两类个人信用数据混叠较严重的数据集,提出对数据集先利用最近邻算法进行修剪,再应用SVM算法对个人信用进行评估的NN-SVM方法。仿真实验表明基于NN-SVM算法的个人信用评估方法比直接用SVM算法进行分析来的更加准确。同时,对比RBF_LS-SVM,Linear LS-SVM,Region single tree等算法的结果,发现NN-SVM算法明显优于其它算法。展开更多
文摘Credit card fraudulent data is highly imbalanced, and it has presented an overwhelmingly large portion of nonfraudulent transactions and a small portion of fraudulent transactions. The measures used to judge the veracity of the detection algorithms become critical to the deployment of a model that accurately scores fraudulent transactions taking into account case imbalance, and the cost of identifying a case as genuine when, in fact, the case is a fraudulent transaction. In this paper, a new criterion to judge classification algorithms, which considers the cost of misclassification, is proposed, and several undersampling techniques are compared by this new criterion. At the same time, a weighted support vector machine (SVM) algorithm considering the financial cost of misclassification is introduced, proving to be more practical for credit card fraud detection than traditional methodologies. This weighted SVM uses transaction balances as weights for fraudulent transactions, and a uniformed weight for nonfraudulent transactions. The results show this strategy greatly improve performance of credit card fraud detection.
文摘Credit card fraud is a wide-ranging issue for financial institutions, involving theft and fraud committed using a payment card. In this paper, we explore the application of linear and nonlinear statistical modeling and machine learning models on real credit card transaction data. The models built are supervised fraud models that attempt to identify which transactions are most likely fraudulent. We discuss the processes of data exploration, data cleaning, variable creation, feature selection, model algorithms, and results. Five different supervised models are explored and compared including logistic regression, neural networks, random forest, boosted tree and support vector machines. The boosted tree model shows the best fraud detection result (FDR = 49.83%) for this particular data set. The resulting model can be utilized in a credit card fraud detection system. A similar model development process can be performed in related business domains such as insurance and telecommunications, to avoid or detect fraudulent activity.
文摘本文针对两类个人信用数据混叠较严重的数据集,提出对数据集先利用最近邻算法进行修剪,再应用SVM算法对个人信用进行评估的NN-SVM方法。仿真实验表明基于NN-SVM算法的个人信用评估方法比直接用SVM算法进行分析来的更加准确。同时,对比RBF_LS-SVM,Linear LS-SVM,Region single tree等算法的结果,发现NN-SVM算法明显优于其它算法。
