Credit Card Fraud Detection: An Exploration of Different Sampling Methods to Solve the Class Imbalance Problem

2022 ◽  
pp. 825-837
Author(s):  
Mythili Krishnan ◽  
Madhan Kumar Srinivasan
Keyword(s):  
Credit Card ◽  
Sampling Methods ◽  
Class Imbalance ◽  
Fraud Detection ◽  
Class Imbalance Problem ◽  
Credit Card Fraud ◽  
Imbalance Problem

scholarly journals FraudMiner: A Novel Credit Card Fraud Detection Model Based on Frequent Itemset Mining

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
K. R. Seeja ◽  
Masoumeh Zareapoor
Keyword(s):  
Credit Card ◽  
Fraud Detection ◽  
Frequent Itemset ◽  
Frequent Itemset Mining ◽  
Class Imbalance Problem ◽  
Classification Rate ◽  
Credit Card Fraud ◽  
Detection Model ◽  
Itemset Mining ◽  
Proposed Model

This paper proposes an intelligent credit card fraud detection model for detecting fraud from highly imbalanced and anonymous credit card transaction datasets. The class imbalance problem is handled by finding legal as well as fraud transaction patterns for each customer by usingfrequent itemset mining.A matching algorithm is also proposed to find to which pattern (legal or fraud) the incoming transaction of a particular customer is closer and a decision is made accordingly. In order to handle the anonymous nature of the data, no preference is given to any of the attributes and each attribute is considered equally for finding the patterns. The performance evaluation of the proposed model is done on UCSD Data Mining Contest 2009 Dataset (anonymous and imbalanced) and it is found that the proposed model has very high fraud detection rate, balanced classification rate, Matthews correlation coefficient, and very less false alarm rate than other state-of-the-art classifiers.

scholarly journals Data Sampling Methods to Deal With the Big Data Multi-Class Imbalance Problem

2020 ◽  
Vol 10 (4) ◽  
pp. 1276 ◽  
Author(s):  
Eréndira Rendón ◽  
Roberto Alejo ◽  
Carlos Castorena ◽  
Frank J. Isidro-Ortega ◽  
Everardo E. Granda-Gutiérrez
Keyword(s):  
Neural Network ◽  
Big Data ◽  
Deep Learning ◽  
Sampling Methods ◽  
Hybrid Approach ◽  
Class Imbalance ◽  
Data Sampling ◽  
Class Imbalance Problem ◽  
Imbalance Problem ◽  
Output Noise

The class imbalance problem has been a hot topic in the machine learning community in recent years. Nowadays, in the time of big data and deep learning, this problem remains in force. Much work has been performed to deal to the class imbalance problem, the random sampling methods (over and under sampling) being the most widely employed approaches. Moreover, sophisticated sampling methods have been developed, including the Synthetic Minority Over-sampling Technique (SMOTE), and also they have been combined with cleaning techniques such as Editing Nearest Neighbor or Tomek’s Links (SMOTE+ENN and SMOTE+TL, respectively). In the big data context, it is noticeable that the class imbalance problem has been addressed by adaptation of traditional techniques, relatively ignoring intelligent approaches. Thus, the capabilities and possibilities of heuristic sampling methods on deep learning neural networks in big data domain are analyzed in this work, and the cleaning strategies are particularly analyzed. This study is developed on big data, multi-class imbalanced datasets obtained from hyper-spectral remote sensing images. The effectiveness of a hybrid approach on these datasets is analyzed, in which the dataset is cleaned by SMOTE followed by the training of an Artificial Neural Network (ANN) with those data, while the neural network output noise is processed with ENN to eliminate output noise; after that, the ANN is trained again with the resultant dataset. Obtained results suggest that best classification outcome is achieved when the cleaning strategies are applied on an ANN output instead of input feature space only. Consequently, the need to consider the classifier’s nature when the classical class imbalance approaches are adapted in deep learning and big data scenarios is clear.

Improvising Balancing Methods for Classifying Imbalanced Data

2021 ◽  
Vol 9 (9) ◽  
pp. 1535-1543
Author(s):  
Himani Tiwari
Keyword(s):  
Learning Community ◽  
Sampling Methods ◽  
Evaluation Criteria ◽  
Class Imbalance ◽  
Imbalanced Data ◽  
Simulated Data ◽  
Data Sets ◽  
Class Imbalance Problem ◽  
Imbalance Problem ◽  
Under Sampling

Abstract: Class Imbalance problem is one of the most challenging problems faced by the machine learning community. As we refer the imbalance to various instances in class of being relatively low as compare to other data. A number of over - sampling and under-sampling approaches have been applied in an attempt to balance the classes. This study provides an overview of the issue of class imbalance and attempts to examine various balancing methods for dealing with this problem. In order to illustrate the differences, an experiment is conducted using multiple simulated data sets for comparing the performance of these oversampling methods on different classifiers based on various evaluation criteria. In addition, the effect of different parameters, such as number of features and imbalance ratio, on the classifier performance is also evaluated. Keywords: Imbalanced learning, Over-sampling methods, Under-sampling methods, Classifier performances, Evaluationmetrices

scholarly journals Detection of Myocardial Infarction Using ECG and Multi-Scale Feature Concatenate

Sensors ◽  
2021 ◽  
Vol 21 (5) ◽  
pp. 1906
Author(s):  
Jia-Zheng Jian ◽  
Tzong-Rong Ger ◽  
Han-Hua Lai ◽  
Chi-Ming Ku ◽  
Chiung-An Chen ◽  
...  
Keyword(s):  
Myocardial Infarction ◽  
Network Structure ◽  
Class Imbalance ◽  
Class Imbalance Problem ◽  
Multi Scale ◽  
Imbalance Problem ◽  
Average Accuracy ◽  
Significant Difference ◽  
Electrocardiogram Ecg

Diverse computer-aided diagnosis systems based on convolutional neural networks were applied to automate the detection of myocardial infarction (MI) found in electrocardiogram (ECG) for early diagnosis and prevention. However, issues, particularly overfitting and underfitting, were not being taken into account. In other words, it is unclear whether the network structure is too simple or complex. Toward this end, the proposed models were developed by starting with the simplest structure: a multi-lead features-concatenate narrow network (N-Net) in which only two convolutional layers were included in each lead branch. Additionally, multi-scale features-concatenate networks (MSN-Net) were also implemented where larger features were being extracted through pooling the signals. The best structure was obtained via tuning both the number of filters in the convolutional layers and the number of inputting signal scales. As a result, the N-Net reached a 95.76% accuracy in the MI detection task, whereas the MSN-Net reached an accuracy of 61.82% in the MI locating task. Both networks give a higher average accuracy and a significant difference of p < 0.001 evaluated by the U test compared with the state-of-the-art. The models are also smaller in size thus are suitable to fit in wearable devices for offline monitoring. In conclusion, testing throughout the simple and complex network structure is indispensable. However, the way of dealing with the class imbalance problem and the quality of the extracted features are yet to be discussed.

scholarly journals A Novel Focal Phi Loss for Power Line Segmentation with Auxiliary Classifier U-Net

Sensors ◽  
2021 ◽  
Vol 21 (8) ◽  
pp. 2803
Author(s):  
Rabeea Jaffari ◽  
Manzoor Ahmed Hashmani ◽  
Constantino Carlos Reyes-Aldasoro
Keyword(s):  
Loss Function ◽  
Class Imbalance ◽  
Power Line ◽  
Aerial Images ◽  
Class Imbalance Problem ◽  
Trade Off ◽  
Urban Scenes ◽  
Imbalance Problem ◽  
A Minor ◽  
Evaluation Parameters

The segmentation of power lines (PLs) from aerial images is a crucial task for the safe navigation of unmanned aerial vehicles (UAVs) operating at low altitudes. Despite the advances in deep learning-based approaches for PL segmentation, these models are still vulnerable to the class imbalance present in the data. The PLs occupy only a minimal portion (1–5%) of the aerial images as compared to the background region (95–99%). Generally, this class imbalance problem is addressed via the use of PL-specific detectors in conjunction with the popular class balanced cross entropy (BBCE) loss function. However, these PL-specific detectors do not work outside their application areas and a BBCE loss requires hyperparameter tuning for class-wise weights, which is not trivial. Moreover, the BBCE loss results in low dice scores and precision values and thus, fails to achieve an optimal trade-off between dice scores, model accuracy, and precision–recall values. In this work, we propose a generalized focal loss function based on the Matthews correlation coefficient (MCC) or the Phi coefficient to address the class imbalance problem in PL segmentation while utilizing a generic deep segmentation architecture. We evaluate our loss function by improving the vanilla U-Net model with an additional convolutional auxiliary classifier head (ACU-Net) for better learning and faster model convergence. The evaluation of two PL datasets, namely the Mendeley Power Line Dataset and the Power Line Dataset of Urban Scenes (PLDU), where PLs occupy around 1% and 2% of the aerial images area, respectively, reveal that our proposed loss function outperforms the popular BBCE loss by 16% in PL dice scores on both the datasets, 19% in precision and false detection rate (FDR) values for the Mendeley PL dataset and 15% in precision and FDR values for the PLDU with a minor degradation in the accuracy and recall values. Moreover, our proposed ACU-Net outperforms the baseline vanilla U-Net for the characteristic evaluation parameters in the range of 1–10% for both the PL datasets. Thus, our proposed loss function with ACU-Net achieves an optimal trade-off for the characteristic evaluation parameters without any bells and whistles. Our code is available at Github.

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