Search Results (107)

This study addresses the challenges of data imbalance and missing values in credit card transaction datasets by employing mode-based imputation and various machine learning models. We analyzed two distinct datasets: one consisting of European cardholders and the other from American Express, applying multiple machine learning algorithms, including Artificial Neural Networks, Convolutional Neural Networks, and Gradient Boosted Decision Trees, as well as others. Notably, the Gradient Boosted Decision Tree demonstrated superior predictive performance, with accuracy increasing by 4.53%, reaching 96.92% on the European cardholders dataset. Mode imputation significantly improved data quality, enabling stable and reliable analysis of merged datasets with up to 50% missing values. Hypothesis testing confirmed that the performance of the merged dataset was statistically significant compared to the original datasets. This study highlights the importance of robust data handling techniques in developing effective fraud detection systems, setting the stage for future research on combining different datasets and improving predictive accuracy in the financial sector. Full article

Globally, forest leisure and recreation (FLR) activities are widely recognized not only for their environmental and social benefits but also for their economic contributions. To better understand these economic contributions, it is vital to examine how the regional economic levels of customers vary when consuming FLR. This study aimed to empirically examine whether the regional economic level of residents (i.e., gross regional domestic product; GRDP) is classifiable using FLR expenditure data, and to interpret which variables contribute to its classification. We acquired anonymized credit card transaction data on residents of two regions with different GRDP levels. The data were preprocessed by identifying FLR-related industries and extracting key spending features for classification analysis. Five classification models (e.g., deep neural network (DNN), random forest, extreme gradient boosting, support vector machine, and logistic regression) were applied. Among the models, the DNN model presented the best performance (overall accuracy = 0.73; area under the curve (AUC) = 0.82). SHAP analysis showed that the “FLR industry” variable was most influential in differentiating GRDP levels across all the models. These findings demonstrate that FLR consumption patterns may vary and are interpretable by economic levels, providing an empirical framework for designing regional economic policies. Full article

In such a dynamic and increasingly digitalized financial sector, many sophisticated fraudulent and cybercrime activities continue to challenge conventional detection systems. This research study explores a decentralized anomaly detection framework using deep autoencoders, designed to meet the dual imperatives of fraud detection effectiveness and user data privacy. Instead of relying on centralized aggregation or data sharing, the proposed model simulates distributed training across multiple financial nodes, with each institution processing data locally and independently. The framework is evaluated using two real-world datasets, the Credit Card Fraud dataset and the NeurIPS 2022 Bank Account Fraud dataset. The research methodology applied robust preprocessing, the implementation of a compact autoencoder architecture, and a threshold-based anomaly detection strategy. Evaluation metrics, such as confusion matrices, receiver operating characteristic (ROC) curves, precision–recall (PR) curves, and reconstruction error distributions, are used to assess the model’s performance. Also, a threshold sensitivity analysis has been applied to explore detection trade-offs at varying levels of strictness. Although the model’s recall remains modest due to class imbalance, it demonstrates strong precision at higher thresholds, which demonstrates its utility in minimizing false positives. Overall, this research study is a practical and privacy-conscious approach to fraud detection that aligns with the operational realities of financial institutions and regulatory compliance toward scalability, privacy preservation, and interpretable fraud detection solutions suitable for real-world financial environments. Full article

Financial fraud detection is a critical application area within the broader domains of cybersecurity and intelligent financial analytics. With the growing volume and complexity of digital transactions, the traditional rule-based and shallow learning models often fall short in detecting sophisticated fraud patterns. This study addresses the challenge of accurately identifying fraudulent financial activities, especially in highly imbalanced datasets where fraud instances are rare and often masked by legitimate behavior. The existing models also lack interpretability, limiting their utility in regulated financial environments. Experiments were conducted on three benchmark datasets: IEEE-CIS Fraud Detection, European Credit Card Transactions, and PaySim Mobile Money Simulation, each representing diverse transaction behaviors and data distributions. The proposed methodology integrates a transformer-based encoder, multi-teacher knowledge distillation, and a symbolic belief–desire–intention (BDI) reasoning layer to combine deep feature extraction with interpretable decision making. The novelty of this work lies in the incorporation of cognitive symbolic reasoning into a high-performance learning architecture for fraud detection. The performance was assessed using key metrics, including the F1-score, AUC, precision, recall, inference time, and model size. Results show that the proposed transformer–BDI model outperformed traditional and state-of-the-art baselines across all datasets, achieving improved fraud detection accuracy and interpretability while remaining computationally efficient for real-time deployment. Full article

The existing financial payment system has inherent credit card fraud problems that must be solved with strong and effective solutions. In this research, a combined deep learning model that incorporates a convolutional neural network (CNN), long-short-term memory (LSTM), and fully connected output layer is proposed to enhance the accuracy of fraud detection, particularly in addressing the class imbalance problem. A CNN is used for spatial features, LSTM for sequential information, and a fully connected output layer for final decision-making. Furthermore, SMOTE is used to balance the data and hyperparameter tuning is utilized to achieve the best model performance. In the case of hyperparameter tuning, the detection rate is greatly enhanced. High accuracy metrics are obtained by the proposed CNN-LSTM (CLST) model, with a recall of 83%, precision of 70%, F1-score of 76% for fraudulent transactions, and ROC-AUC of 0.9733. The proposed model’s performance is enhanced by hyperparameter optimization to a recall of 99%, precision of 83%, F1-score of 91% for fraudulent cases, and ROC-AUC of 0.9995, representing almost perfect fraud detection along with a low false negative rate. These results demonstrate that optimization of hyperparameters and layers is an effective way to enhance the performance of hybrid deep learning models for financial fraud detection. While prior studies have investigated hybrid structures, this study is distinguished by its introduction of an optimized of CNN and LSTM integration within a unified layer architecture. Full article

This study examines whether the gaps in four financial well-being (FWB) indicators—emergency fund availability, spending less than income, perceived financial comfort, and no credit card debt—between groups with varying levels of financial literacy changed during the economic disruptions of 2020–2022 compared to the more stable period of 2017–2019. Using data from the 2017–2022 waves of the Survey of Household Economics and Decisionmaking conducted by the Federal Reserve Board, this study applies difference-in-differences and event study methods to explore these trends. Descriptive findings, consistent with prior research, show that respondents with higher financial literacy reported greater FWB across all years. Regression estimates based on respondents who provided definitive answers (correct or incorrect) to the Big Three financial literacy questions suggest that the pre-existing gaps in emergency fund availability and perceived financial comfort between respondents with higher and lower financial literacy widened in 2020–2022, whereas the gap in spending less than income remained unchanged. There is some evidence of a widening gap in the likelihood of having no credit card debt, but the estimates are less conclusive. In general, these results indicate that higher financial literacy might have served as a protective factor for some aspects of FWB amid the challenging economic conditions of 2020–2022. However, results based on respondents who provided either correct or “don’t know” answers to the same questions differ in direction from the results of the earlier analysis. The findings of this study have implications for measuring financial literacy and investigating its role in shaping FWB. Full article

This study presents an optimization for a distributed machine learning framework to achieve credit card fraud detection scalability. Due to the growth in fraudulent activities, this research implements the PySpark-based processing of large-scale transaction datasets, integrating advanced machine learning models: Logistic Regression, Decision Trees, Random Forests, XGBoost, and CatBoost. These have been evaluated in terms of scalability, accuracy, and handling imbalanced datasets. Key findings: Among the most promising models for complex and imbalanced data, XGBoost and CatBoost promise close-to-ideal accuracy rates in fraudulent transaction detection. PySpark will be instrumental in scaling these systems to enable them to perform distributed processing, real-time analysis, and adaptive learning. This study further discusses challenges like overfitting, data access, and real-time implementation with potential solutions such as ensemble methods, intelligent sampling, and graph-based approaches. Future directions are underlined by deploying these frameworks in live transaction environments, leveraging continuous learning mechanisms, and integrating advanced anomaly detection techniques to handle evolving fraud patterns. The present research demonstrates the importance of distributed machine learning frameworks for developing robust, scalable, and efficient fraud detection systems, considering their significant impact on financial security and the overall financial ecosystem. Full article

In the field of credit card fraud detection, traditional methods often struggle due to their reliance on complex manual feature engineering or their inability to adapt to rapidly changing fraud patterns. This paper introduces an innovative approach called FinGraphFL, which merges graph-based learning with the principles of federated learning and improves security through differential privacy. FinGraphFL utilizes Graph Attention Networks to analyze dynamic relationships between daily credit card transaction records, enhancing its ability to detect fraudulent activities. With the addition of differential privacy, the model allows multiple financial institutions to collaborate to refine the detection model without sharing sensitive data, thus improving adaptability and accuracy. The results are tested in two public datasets that show that FinGraphFL achieves accuracy rates of $0.9780$ and $0.9839$, significantly outperforming traditional methods. Building on these results, FinGraphFL sets the stage for future advances in real-time learning and global financial collaboration, ensuring simultaneous progress in security and privacy protections. Full article

With the widespread use of credit cards in online and offline transactions, credit card fraud has become a significant challenge in the financial sector. The rapid advancement of payment technologies has led to increasingly sophisticated fraud techniques, necessitating more effective detection methods. While machine learning has been extensively applied in fraud detection, the application of deep learning methods remains relatively limited. Inspired by brain-like computing, this work employs the Continuous-Coupled Neural Network (CCNN) for credit card fraud detection. Unlike traditional neural networks, the CCNN enhances the representation of complex temporal and spatial patterns through continuous neuron activation and dynamic coupling mechanisms. Using the Kaggle Credit Card Fraud Detection (CCFD) dataset, we mitigate data imbalance via the Synthetic Minority Oversampling Technique (SMOTE) and transform sample feature vectors into matrices for training. Experimental results show that our method achieves an accuracy of 0.9998, precision of 0.9996, recall of 1.0000, and an F1-score of 0.9998, surpassing traditional machine learning models, which highlight CCNN’s potential to enhance the security and efficiency of fraud detection in the financial industry. Full article

While the literature has investigated the associations between urban environments and COVID-19 infection, most studies primarily focused on urban density factors and early outbreaks, often reporting mixed results. We examined how diverse urban factors impact COVID-19 cases across 229 administrative districts in South Korea during Pre-Omicron and Post-Omicron periods. Real-time big data (Wi-Fi, GPS, and credit card transactions) were integrated to capture dynamic mobility and economic activities. Using negative binomial regression and random forest modeling, we analyzed urban factors within the D-variable framework: density (e.g., housing density), diversity (e.g., land-use mix), design (e.g., street connectivity), and destination accessibility (e.g., cultural and community facilities). The results revealed the consistent significance of density and destination-related factors across analytic approaches and transmission phases, but specific factors of significance varied over time. Residential and population densities were more related in the early phase, while employment levels and cultural and community facilities became more relevant in the later phase. Traffic volume and local consumption appeared important, though their significance is not consistent across the models. Our findings highlight the need for adaptive urban planning strategies and public health policies that consider both static and dynamic urban factors to minimize disease risks while sustaining urban vitality and health in the evolving pandemic. Full article

This research paper presents novel approaches for detecting credit card risk through the utilization of Long Short-Term Memory (LSTM) networks and XGBoost algorithms. Facing the challenge of securing credit card transactions, this study explores the potential of LSTM networks for their ability to understand sequential dependencies in transaction data. This research sheds light on which model is more effective in addressing the challenges posed by imbalanced datasets in credit risk assessment. The methodology utilized for imbalanced datasets includes the use of the Synthetic Minority Oversampling Technique (SMOTE) to address any imbalance in class distribution. This paper conducts an extensive literature review, comparing various machine learning methods, and proposes an innovative framework that compares LSTM with XGBoost to improve fraud detection accuracy. LSTM, a recurrent neural network renowned for its ability to capture temporal dependencies within sequences of transactions, is compared with XGBoost, a formidable ensemble learning algorithm that enhances feature-based classification. By meticulously carrying out preprocessing tasks, constructing competent training models, and implementing ensemble techniques, our proposed framework demonstrates unwavering performance in accurately identifying fraudulent transactions. The comparison of LSTM and XGBoost shows that LSTM is more effective for our imbalanced dataset. Compared with XGBOOST’s 97% accuracy, LSTM’s accuracy is 99%. The final result emphasizes how crucial it is to select the optimal algorithm based on particular criteria within financial concerns, which will ultimately result in more reliable and knowledgeable credit score decisions. Full article

Competition in Taiwan’s banking industry is becoming fierce. Banks’ traditional income based on interest rates is insufficient to support their growth. Therefore, banks are eager to expand their wealth management business to increase profits. The fee income from the sale of mutual funds is one of the major sources of banks’ wealth management business. The problem is how to look for the right customers and contact them effectively. Therefore, it is necessary to develop classification prediction models for these banks to evaluate their customers’ potential to buy mutual fund products sold by commercial banks and then deploy marketing resources on these customers to increase banks’ profits. Recently, the XGBoost algorithm has been widely used in conducting classification tasks. Therefore, using the eXtreme Gradient Boosting algorithm, a mutual fund marketing prediction model is developed based on a commercial bank’s data in this study. The results show that whether a customer has an unsecured loan, a customer’s amount of assets in the bank, the number of months for transactions, a place of residence, and whether the bank is the main bank for the total amount of credit card bills in the past six months are the top five factors for the models, providing valuable information for effective wealth management and marketing. Full article

Increasing adoption of electric vehicles (EVs) and the expansion of EV charging infrastructure present opportunities for enhancing sustainable transportation within smart cities. However, the interconnected nature of EV charging stations (EVCSs) exposes this infrastructure to various cyber threats, including false data injection, man-in-the-middle attacks, malware intrusions, and denial of service attacks. Financial attacks, such as false billing and theft of credit card information, also pose significant risks to EV users. In this work, we propose a Hyperledger Fabric-based blockchain network for EVCSs to mitigate these risks. The proposed blockchain network utilizes smart contracts to manage key processes such as authentication, charging session management, and payment verification in a secure and decentralized manner. By detecting and mitigating malicious data tampering or unauthorized access, the blockchain system enhances the resilience of EVCS networks. A comparative analysis of pre- and post-implementation of the proposed blockchain network demonstrates how it thwarts current cyberattacks in the EVCS infrastructure. Our analyses include performance metrics using the benchmark Hyperledger Caliper test, which shows the proposed solution’s low latency for real-time operations and scalability to accommodate the growth of EV infrastructure. Deployment of this blockchain-enhanced security mechanism will increase user trust and reliability in EVCS systems. Full article

According to the Federal Reserve of the United States, in the second quarter of 2024, American credit card debt reached USD 1.14 trillion, the highest balance ever recorded. In an age of high-interest, complex credit cards, how does financial literacy affect credit card debt repayment? Also, how could financial literacy and education stop the rise in credit card debt in America? To answer these questions, we use microdata from the latest wave of the Survey of Consumer Finances for 2022. We aim to capture the likelihood of credit card repayment behaviors related to the monthly balances owed by 3865 credit card holders. We consider three categories of self-reported credit card payoff behavior: hardly ever, sometimes, and always or almost always. Given the ordinal nature of our outcome variable, we perform a series of likelihood-ratio and Brant tests to assess the assumption of the proportionality of odds across response categories. Following the failure of the tests, we conclude with the selection of a generalized ordered logit/partial proportional odds model that allows us to relax the parallel lines constraint for those variables for which it is not justified. In our logistic regressions, we account for a comprehensive set of demographic characteristics, and from our results, we highlight the following: For credit card holders with low financial literacy, we find that the odds of moving to a higher category of payoff behavior are 21% and significantly lower than those of high financial literacy respondents. Further, for college-educated card holders, the odds of paying off always or almost always versus sometimes and hardly ever are 2.49 times and significantly greater than the odds for credit card holders without a college education. Credit card holders who are minority group members, female, under 45, have dependents, or earn less than USD 50,000 demonstrate a tendency for poor credit card payoff behavior. In our conclusion, we discuss how to improve credit card repayments. We stress the importance of monitoring people closely. We also aim to provide better financial advice to certain groups. Lastly, we present a more realistic approach to building and sustaining financial literacy. Full article

In recent years, with the rapid development of technology and the economy, online transaction fraud has become more and more frequent. In the face of massive records of online transaction data, manual detection methods are long outdated, and machine learning methods have become mainstream. However, although traditional machine learning methods perform well in fraud detection tasks, the lack of interpretability and class imbalance issues have always been pain points that are difficult to resolve for such methods. Unlike traditional methods, the belief rule base, as a rule-based expert system model, can integrate expert knowledge and has excellent interpretability. In this paper, we propose an innovative ensemble BRB (belief rule base) model to solve the credit card fraud detection problem by combining an ensemble learning framework with the BRB model. Compared with traditional machine learning methods, the proposed model has the advantage of high interpretability. And compared with traditional BRB models, the ensemble framework enables better performance in dealing with highly imbalanced classification tasks. In an experimental study, two datasets of credit card fraud detection from Kaggle are used to validate the effectiveness of this work. The results show that this new method can achieve excellent performance in the application of fraud detection and is capable of effectively mitigating the impact of an imbalanced dataset. Full article