Research Area:  Big Data

Abstract:

With the rapid development of electronic commerce, the number of transactions by credit cards are increasing rapidly. As online shopping becomes the most popular transaction mode, cases of transaction fraud are also increasing. In this paper, we propose a novel fraud detection method that composes of four stages. To enrich a cardholders behavioral patterns, we first utilize the cardholders historical transaction data to divide all cardholders into different groups such that the transaction behaviors of the members in the same group are similar. We thus propose a window-sliding strategy to aggregate the transactions in each group. Next, we extract a collection of specific behavioral patterns for each cardholder based on the aggregated transactions and the cardholders historical transactions. Then we train a set of classifiers for each group on the base of all behavioral patterns. Finally, we use the classifier set to detect fraud online and if a new transaction is fraudulent, a feedback mechanism is taken in the detection process in order to solve the problem of concept drift. The results of our experiments show that our approach is better than others.

Keywords:  

Author(s) Name:  Changjun Jiang; Jiahui Song; Guanjun Liu; Lutao Zheng and Wenjing Luan

Publisher name:  IEEE

DOI:  10.1109/JIOT.2018.2816007

Volume Information:  Volume: 5, Issue: 5, Oct. 2018,Page(s): 3637 - 3647

Paper Link:   https://ieeexplore.ieee.org/document/8316850