journal article·2021-10-26Open access

Machine Learning Based on Resampling Approaches and Deep Reinforcement Learning for Credit Card Fraud Detection Systems

Tran Khanh Dang, Thanh Cong Tran, Luc Minh Tuan, Mai Viet Tiep

Applied Sciences· Volume 11· Issue 21

Abstract

The problem of imbalanced datasets is a significant concern when creating reliable credit card fraud (CCF) detection systems. In this work, we study and evaluate recent advances in machine learning (ML) algorithms and deep reinforcement learning (DRL) used for CCF detection systems, including fraud and non-fraud labels. Based on two resampling approaches, SMOTE and ADASYN are used to resample the imbalanced CCF dataset. ML algorithms are, then, applied to this balanced dataset to establish CCF detection systems. Next, DRL is employed to create detection systems based on the imbalanced CCF dataset. The diverse classification metrics are indicated to thoroughly evaluate the performance of these ML and DRL models. Through empirical experiments, we identify the reliable degree of ML models based on two resampling approaches and DRL models for CCF detection. When SMOTE and ADASYN are used to resampling original CCF datasets before training/test split, the ML models show very high outcomes of above 99% accuracy. However, when these techniques are employed to resample for only the training CCF datasets, these ML models show lower results, particularly in terms of logistic regression with 1.81% precision and 3.55% F1 score for using ADASYN. Our work reveals the DRL model is ineffective and achieves low performance, with only 34.8% accuracy.
Source: crossref · Quality: baseline

Research context

OpenAlex topics: Imbalanced Data Classification Techniques · Financial Distress and Bankruptcy Prediction · Vehicle License Plate Recognition

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

Ho Chi Minh City University of Technology, VNU-HCM, Ho Chi Minh City, Vietnam

Ho Chi Minh City University of Economics and Finance, Ho Chi Minh City, Vietnam

Ton Duc Thang University, Ho Chi Minh City, Vietnam

Academy of Cryptography Techniques, Ho Chi Minh City, Vietnam

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