Enhancing Credit Card Fraud Detection A Neural Network and SMOTE Integrated Approach

Fuente: arXiv
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Autori principali: Zhu, Mengran, Zhang, Ye, Gong, Yulu, Xu, Changxin, Xiang, Yafei
Natura: Preprint
Pubblicazione: 2024
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author Zhu, Mengran
Zhang, Ye
Gong, Yulu
Xu, Changxin
Xiang, Yafei
author_facet Zhu, Mengran
Zhang, Ye
Gong, Yulu
Xu, Changxin
Xiang, Yafei
contents 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) and Synthet ic Minority Over-sampling Technique (SMOTE) to enhance the detection performance. The study addresses the inherent imbalance in credit card transaction data, focusing on technical advancements for robust and precise fraud detection. Results demonstrat e that the integration of NN and SMOTE exhibits superior precision, recall, and F1-score compared to traditional models, highlighting its potential as an advanced solution for handling imbalanced datasets in credit card fraud detection scenarios. This rese arch contributes to the ongoing efforts to develop effective and efficient mechanisms for safeguarding financial transactions from fraudulent activities.
format Preprint
id arxiv_https___arxiv_org_abs_2405_00026
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Enhancing Credit Card Fraud Detection A Neural Network and SMOTE Integrated Approach
Zhu, Mengran
Zhang, Ye
Gong, Yulu
Xu, Changxin
Xiang, Yafei
Computational Engineering, Finance, and Science
Artificial Intelligence
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) and Synthet ic Minority Over-sampling Technique (SMOTE) to enhance the detection performance. The study addresses the inherent imbalance in credit card transaction data, focusing on technical advancements for robust and precise fraud detection. Results demonstrat e that the integration of NN and SMOTE exhibits superior precision, recall, and F1-score compared to traditional models, highlighting its potential as an advanced solution for handling imbalanced datasets in credit card fraud detection scenarios. This rese arch contributes to the ongoing efforts to develop effective and efficient mechanisms for safeguarding financial transactions from fraudulent activities.
title Enhancing Credit Card Fraud Detection A Neural Network and SMOTE Integrated Approach
topic Computational Engineering, Finance, and Science
Artificial Intelligence
url https://arxiv.org/abs/2405.00026