Session-Based Fraud Detection in Online E-Commerce Transactions Using Recurrent Neural Networks

Shuhao Wang, Cancheng Liu, Xiang Gao, Hongtao Qu, Wei Xu

Abstract: Transaction frauds impose serious threats onto e-commerce. We present CLUE, a novel deep-learning-based transaction fraud detection system we design and deploy at JD.com, one of the largest e-commerce platforms in China with over 220 million active users. CLUE captures detailed information on users’ click actions using neural-network based embedding, and models sequences of such clicks using the recurrent neural network. Furthermore, CLUE provides application-specific design optimizations including imbalanced learning, real-time detection, and incremental model update. Using real production data for over eight months, we show that CLUE achieves over 3x improvement over the existing fraud detection approaches.