Application of SIRUS in Credit Card Fraud Detection

Yuwei Zhang, Guanjun Liu, Wenjing Luan, Chungang Yan, Changjun Jiang

Abstract: Credit card fraud problem is very common in recent years. It not only causes economic loss to people, but also causes trust crisis to enterprises. Due to the imbalance of data, fraud detection has always been tricky. In our previous work, we proposed a method of dealing with the class imbalance problem based on stacking ensemble learning and inverse random undersampling method (SIRUS). First, the inverse random undersampling method is used to generate multiple data subsets from the original data set. Then we use the stacking ensemble learning method for each data subset to train several different learners (also called first-level learners), and then the results generated by each first-level learner are taken as features to train a meta learner. We apply SIRUS to detect the credit card fraud in this paper. Our dataset comes from a financial company in China. A variety of measurements such as recall, precision, accuracy, F-measure, and G-mean to illustrate the effectiveness of our method in fraud detection.