Evolutionary algorithms based on oversampling techniques for enhancing the imbalanced credit card fraud detection

Article type: Research Article

Authors: Korkoman, Malak Jalwi^*; | Abdullah, Monir

Affiliations: Department of Computer Science, College of Computing and Information Technology, University of Bisha, Bisha, Kingdom of Saudi Arabia

Correspondence: [*] Corresponding author. Malak Jalwi Korkoman. E-mail: malakkorkoman@gmail.com.

Abstract: Online services have advanced to the point where they have made our lives much easier, but many problems should be solved to make these services safer for consumers. Numerous transactions are conducted daily, and much personal information is published and shared on e-commerce and social media platforms. This makes security, privacy, and problematic reliability barriers to overcome. One of these problems is detecting credit card fraud because thieves aim to make all transactions legitimate by stealing credit card information. Imbalanced data is a potential problem in machine learning that impairs the performance of the classifiers used in real-world systems. For example, anomaly detection and fraudulent transactions. The term “data imbalance” refers to the problem in which the sample distribution is skewed or skewed towards a particular class. Due to its inherent nature, the software failure prediction dataset falls into the same category as non-defective software modules. The main objective of this paper is to solve the problem of the imbalanced fraud credit card dataset for enhancing the detection accuracy of using machine learning algorithms. This paper provides a unique fraud detection model using the Particle Swarm Optimization (PSO) based on oversampling technique of the minority class to solve the imbalanced dataset problem compared with the Genetic Algorithm (GA) technique. Random Forest (RF) algorithm shows up with sensitivity, specificity, and accuracy. The experimental results achieved 99.3% and 99.4% for GA and PSO within seconds, respectively. Experiments show that the proposed methods outperform other methods, evidenced by the higher classification accuracy obtained.

Keywords: Fraud detection, genetic algorithm, particle swarm optimization, oversampling, random forest

DOI: 10.3233/JIFS-222344

Journal: Journal of Intelligent & Fuzzy Systems, vol. 44, no. 6, pp. 10311-10323, 2023