A Rule-Based and Game-Theoretic Approach to Online Credit Card Fraud Detection

2007 ◽  
Vol 1 (3) ◽  
pp. 26-46
Author(s):  
Vishal Vatsa ◽  
Shamik Sural ◽  
A. K. Majumdar
Author(s):  
Vishal Vatsa ◽  
Shamik Sural ◽  
A.K. Majumdar

Traditional security mechanisms are often found to be inadequate for protection against attacks by authorized users or intruders posing as authorized users. This has drawn interest of the research community towards intrusion detection techniques. The authors model the conflicting motives between an intruder and an intrusion detection system as a multi-stage game between two players, each trying to maximize its payoff. They consider the specific application of credit card fraud detection and propose a two-tiered architecture having a rule-based component in the first tier and a Game-theoretic component in the second tier. Classical Game theory is considered useful in many situations because it permits the formulation of strategies that are optimal regardless of what the adversary does, negating the need for prediction of his behavior. However, the authors use it in a predictive application in the sense that we consider intruders as rational adversaries who would try to behave optimally, and the expected optimal behavior can be determined through Game theory.


2021 ◽  
Vol 15 (24) ◽  
pp. 108-122
Author(s):  
Arjwan H. Almuteer ◽  
Asma A. Aloufi ◽  
Wurud O. Alrashidi ◽  
Jowharah F. Alshobaili ◽  
Dina M. Ibrahim

Credit card is getting increasingly more famous in budgetary exchanges, simultaneously frauds are likewise expanding. Customary techniques use rule-based master frameworks to identify fraud practices, ignoring assorted circumstances, the outrageous lopsidedness of positive and negative examples. In this paper, we propose a CNN-based fraud detection system, to catch the natural examples of fraud practices gained from named information. Bountiful exchange information is spoken to by an element lattice, on which a convolutional neural organization is applied to recognize a bunch of idle examples for each example. Trials on true monstrous exchanges of a significant business bank show its boss presentation contrasted and some best-in-class strategies. The aim of this paper is to merge between Convolutional Neural Network (CNN), Long-Short Term Memory (LSTM), and Auto-encoder (AE) to increase credit card fraud detection and enhance the performance of the previous models. By using these four models; CNN, AE, LSTM, and AE&LSTM. each of these models is trained by different parameter values highest accuracy has been achieved where the AE model has accuracy =0.99, the CNN model has accuracy =0.85, the accuracy of the LSTM model is 0.85, and finally, the AE&LSTM model obtained an accuracy of 0.32 by 400 epoch. It is concluded that the AE classifies the best result between these models.


1982 ◽  
Vol 55 (3) ◽  
pp. 367 ◽  
Author(s):  
Carl Alan Batlin ◽  
Susan Hinko

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