On the Potential of Network-Based Features for Fraud Detection
- URL: http://arxiv.org/abs/2402.09495v2
- Date: Mon, 19 Feb 2024 11:58:13 GMT
- Title: On the Potential of Network-Based Features for Fraud Detection
- Authors: Catayoun Azarm, Erman Acar, Mickey van Zeelt
- Abstract summary: This article explores using the personalised PageRank (PPR) algorithm to capture the social dynamics of fraud.
The primary objective is to compare the performance of traditional features with the addition of PPR in fraud detection models.
Results indicate that integrating PPR enhances the model's predictive power, surpassing the baseline model.
- Score: 3.0846824529023382
- License: http://creativecommons.org/licenses/by/4.0/
- Abstract: Online transaction fraud presents substantial challenges to businesses and
consumers, risking significant financial losses. Conventional rule-based
systems struggle to keep pace with evolving fraud tactics, leading to high
false positive rates and missed detections. Machine learning techniques offer a
promising solution by leveraging historical data to identify fraudulent
patterns. This article explores using the personalised PageRank (PPR) algorithm
to capture the social dynamics of fraud by analysing relationships between
financial accounts. The primary objective is to compare the performance of
traditional features with the addition of PPR in fraud detection models.
Results indicate that integrating PPR enhances the model's predictive power,
surpassing the baseline model. Additionally, the PPR feature provides unique
and valuable information, evidenced by its high feature importance score.
Feature stability analysis confirms consistent feature distributions across
training and test datasets.
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