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Arxiv

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Image Credit: Arxiv

Advanced fraud detection using machine learning models: enhancing financial transaction security

  • Research introduces a machine learning framework for detecting credit card transaction anomalies and fraud.
  • Framework merges various datasets to create an analytical view, extracting behavioral signals.
  • Features like average spending, deviations from patterns, and temporal markers are utilized in fraud detection.
  • Data analysis reveals transaction trends across different features.
  • Models like Isolation Forest, One Class SVM, and deep autoencoder are trained on transactional data.
  • Top 1% reconstruction errors are flagged as outliers by trained models.
  • PCA visualizations depict anomaly separation in a two-dimensional latent space.
  • K-Means clustering and DBSCAN are applied to segment the transaction landscape for detecting suspicious regions.

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