Credit Card Fraud Detection With Machine Learning Methods

Abstract

With the increase in credit card usage of people, the credit card transactions increase dramatically. It is difficult to identify fraudulent transactions among the vast amount of credit card transactions. Although credit card fraud is limited in number of transactions, it causes serious problems in terms of financial losses for individuals and organizations. Even though large number of studies has been conducted to solve this problem, there is no generally accepted solution. In this paper, a publicly available data set is used. The unbalance problem of the data set was solved by using hybrid sampling methods together. On this data set, comparative performance evaluations have been conducted. Different from other studies, the Area Under the Curve (AUC) metric, which expresses the success in such data sets, has also been used in addition to standard performance metrics. Since it is also important to quickly detect credit card fraud transactions; the running time of different methods is also presented as another performance metric.