Detection of Credit Card Fraud with Machine Learning Methods and Resampling Techniques

Financial institutions in the form of banks provide facilities in the form of credit cards, but with the development of technology, fraud on credit card transactions is still common, so a system is needed that can detect fraud transactions quickly and accurately. Therefore, this study aims to classi...

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Bibliographic Details
Published in:	Jurnal RESTI (Rekayasa Sistem dan Teknologi Informasi) (Online) Vol. 6; no. 6; pp. 923 - 929
Main Authors:	Moh. Badris Sholeh Rahmatullah, Aulia Ligar Salma Hanani, Akmal Muhammad Naim, Zamah Sari, Yufis Azhar
Format:	Journal Article
Language:	English
Published:	Ikatan Ahli Informatika Indonesia 27-12-2022
Subjects:	classification credit card fraud ensemble learning machine learning resampling
Online Access:	Get full text
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Summary:	Financial institutions in the form of banks provide facilities in the form of credit cards, but with the development of technology, fraud on credit card transactions is still common, so a system is needed that can detect fraud transactions quickly and accurately. Therefore, this study aims to classify fraudulent transactions. The proposed method is Ensemble Learning which will be tested using the Boosting type with 3 variations, namely XGBoost, Gradient Boosting, and AdaBoost. Then, to maximize the performance of the model, the dataset used is optimized with the Synthetic Minority Oversampling Technique (SMOTE) function from the Imblearn library in the data train to handle imbalanced dataset conditions. The dataset used in this study is entitled "Credit Card Fraud Detection" with a total of 284807 data which is divided into two classes: Not Fraud and Fraud. The proposed model received a recall of 92% with Gradient Boosting, where the results increased by 10.37% compared to the previous study using Random Forest with a recall result of 81.63%. This is because the use of SMOTE in the data train greatly influences the classification of Not fraud and fraud classes.
ISSN:	2580-0760 2580-0760
DOI:	10.29207/resti.v6i6.4213