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Analyzing Factors Affecting Credit Card Fraud: Four Model-based Approach

  • Xuefei Xu*
  • , Kailin Chen
  • *Corresponding author for this work

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

Abstract

With the proliferation of the internet, credit card fraud has become a pressing issue, leading to substantial financial losses and undermining trust among consumers. This research aims to elucidate the determinants associated with credit card fraud. By importing and cleansing two databases from Kaggle, we constructed two heatmaps for comparison, subsequently selecting the most suitable database for further analysis. We then established four models: Linear Regression model, Random Forest classifier, Logistic Regression model, and Decision Tree model. By comparing the confusion matrices and ROC curves of each model, the Linear Regression model emerged as the most proficient. Ultimately, three highly correlative factors were identified in relation to credit card fraud: High-risk country, Total number of declines per day, and 6-month chargeback frequency. The findings from this research pave the way for bolstering financial security, enhancing the efficacy of fraud detection, and thereby mitigating potential losses for consumers. © 2023 ACM.
Original languageEnglish
Title of host publicationBDE '23: Proceedings of the 2023 5th International Conference on Big Data Engineering
PublisherAssociation for Computing Machinery
Pages28-34
ISBN (Print)9798400708695
DOIs
Publication statusPublished - Nov 2023
Event5th International Conference on Big Data Engineering (BDE 2023) - Online, Zhuhai, China
Duration: 17 Nov 202320 Nov 2023

Publication series

NameACM International Conference Proceeding Series

Conference

Conference5th International Conference on Big Data Engineering (BDE 2023)
PlaceChina
CityZhuhai
Period17/11/2320/11/23

Research Keywords

  • Decision Tree Model
  • Linear Regression Model
  • Logistic Regression Model
  • Machine Learning in Fraud Detection
  • Random Forest Model

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