Machine Learning Approach To Detect Fraudulent Banking Transactions PDF Download

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Machine Learning Approach to Detect Fraudulent Banking Transactions

Machine Learning Approach to Detect Fraudulent Banking Transactions
Author: Riwaj Kharel
Publisher: GRIN Verlag
Total Pages: 75
Release: 2022-09-22
Genre: Computers
ISBN: 3346728943

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Master's Thesis from the year 2022 in the subject Computer Sciences - Artificial Intelligence, grade: 3, University of Applied Sciences Berlin, course: Project management and Data Science, language: English, abstract: The study investigates whether a machine learning algorithm can be used to detect fraud attempts and how a fraud management system based on machine learning might work. For fraud detection, most institutions rely on rule-based systems with manual evaluation. Until recently, these systems had been performing admirably. However, as fraudsters become more sophisticated, traditional systems' outcomes are becoming inconsistent. Fraud usually comprises many methods that are used repeatedly that's why looking for patterns is a common emphasis for fraud detection. Data analysts can, for example, avoid insurance fraud by developing algorithms that recognize trends and abnormalities. AI techniques used to detect fraud include Data mining classifies, groups, and segments data to search through millions of transactions to find patterns and detect fraud. The scientific paper discusses machine learning methods to detect fraud detection with a case study and analysis of Kaggle datasets.


Advanced Techniques for Fraudulent Transaction Detection

Advanced Techniques for Fraudulent Transaction Detection
Author: Sagan Kakkar
Publisher:
Total Pages: 0
Release: 2024
Genre:
ISBN:

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Machine learning is one of the newest and most effective ways to classify data and make predictions. There are numerous machine learning methods that are used for a variety of tasks, such as prediction and classification. Before machine learning, statistical analysis was the main method used to make predictions and classify data. Like machine learning, statistical analysis has an abundance of procedures that can be used. This thesis aims to compare the old and the new: machine learning with statistical procedures. The goal of this study is to detect fraudulent transactions amongst a financial data set. Machine learning and statistical analysis each offer a unique method of addressing the situation. Through a review of the literature, experimentation and analysis, this study aims to thoroughly examine various approaches, with a particular emphasis on how well they identify fraudulent activity in financial transactions. The results of this thesis provide important new information about how machine learning and statistical methods compare in terms of their ability to detect fraud in financial transactions. This research intends to enhance decision-making processes in the implementation of fraud detection systems and inspire further breakthroughs in machine learning and statistical approaches for efficiently combating financial crime by illuminating the advantages and disadvantages of each strategy.


Machine Learning for Finance

Machine Learning for Finance
Author: Saurav Singla
Publisher: BPB Publications
Total Pages: 218
Release: 2021-01-05
Genre: Computers
ISBN: 9389328624

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Understand the essentials of Machine Learning and its impact in financial sector KEY FEATURESÊ _Explore the spectrum of machine learning and its usage. _Understand the NLP and Computer Vision and their use cases. _Understand the Neural Network, CNN, RNN and their applications. _ÊUnderstand the Reinforcement Learning and their applications. _Learn the rising application of Machine Learning in the Finance sector. Ê_Exposure to data mining, data visualization and data analytics. DESCRIPTION The fields of machining adapting, profound learning, and computerized reasoning are quickly extending and are probably going to keep on doing as such for a long time to come. There are many main impetuses for this, as quickly caught in this review. Now and again, the advancement has been emotional, opening new ways to deal with long-standing innovation challenges, for example, progresses in PC vision and picture investigation.Ê Ê The book demonstrates how to solve some of the most common issues in the financial industry.Ê The book addresses real-life problems faced by practitioners on a daily basis. The book explains how machine learning works on structured data, text, and images. You will cover the exploration of Na•ve Bayes, Normal Distribution, Clustering with Gaussian process, advanced neural network, sequence modeling, and reinforcement learning. Later chapters will discuss machine learning use cases in the finance sector and the implications of deep learning. The book ends with traditional machine learning algorithms. Ê Machine Learning has become very important in the finance industry, which is mostly used for better risk management and risk analysis. Better analysis leads to better decisions which lead to an increase in profit for financial institutions. Machine Learning to empower fintech to make massive profits by optimizing processes, maximizing efficiency, and increasing profitability. WHAT WILL YOU LEARN _ Ê Ê Ê You will grasp the most relevant techniques of Machine Learning for everyday use. _ Ê Ê Ê You will be confident in building and implementing ML algorithms. _ Ê Ê Ê Familiarize the adoption of Machine Learning for your business need. _ Ê Ê Ê Discover more advanced concepts applied in banking and other sectors today. _ Ê Ê Ê Build mastery skillset in designing smart AI applications including NLP, Computer Vision and Deep Learning. WHO THIS BOOK IS FORÊ Data Scientist, Machine Learning Engineers and Individuals who want to adopt machine learning in the financial domain. Practitioners are working in banks, asset management, hedge funds or working the first time in the finance domain. Individuals who want to learn about applications of machine learning in finance or individuals entering the fintech domain. TABLE OF CONTENTS 1.Introduction 2.Naive Bayes, Normal Distribution and Automatic Clustering Processes 3.Machine Learning for Data Structuring 4.Parsing Data Using NLP 5.Computer Vision 6.Neural Network, GBM and Gradient Descent 7.Sequence Modeling 8.Reinforcement Learning For Financial Markets 9.Finance Use Cases 10.Impact of Machine Learning on Fintech 11.Machine Learning in Finance 12.eKYC and Anti-Fraud Policy 13.Uses of Data Mining and Data Visualization 14.Advantages and Disadvantages of Machine Learning 15.Applications of Machine Learning in Other Industries 16.Ethical considerations in Artificial Intelligence 17.Artificial Intelligence in Banking 18.Common Machine Learning Algorithms 19.Frequently Asked Questions


Anomaly Detection in Credit Card Transactions Using Machine Learning

Anomaly Detection in Credit Card Transactions Using Machine Learning
Author: Meenu
Publisher:
Total Pages: 5
Release: 2020
Genre:
ISBN:

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Anomaly Detection is a method of identifying the suspicious occurrence of events and data items that could create problems for the concerned authorities. Data anomalies are usually associated with issues such as security issues, server crashes, bank fraud, building structural flaws, clinical defects, and many more. Credit card fraud has now become a massive and significant problem in today's climate of digital money. These transactions carried out with such elegance as to be similar to the legitimate one. So, this research paper aims to develop an automatic, highly efficient classifier for fraud detection that can identify fraudulent transactions on credit cards. Researchers have suggested many fraud detection methods and models, the use of different algorithms to identify fraud patterns. In this study, we review the Isolation forest, which is a machine learning technique to train the system with the help of H2O.ai. The Isolation Forest was not so much used and explored in the area of anomaly detection. The overall performance of the version evaluated primarily based on widely-accepted metrics: precision and recall. The test data used in our research come from Kaggle.


Machine Learning Advances in Payment Card Fraud Detection

Machine Learning Advances in Payment Card Fraud Detection
Author: Nick Ryman-Tubb
Publisher: Academic Press
Total Pages: 350
Release: 2019-06-15
Genre: Business & Economics
ISBN: 9780128134153

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Machine Learning Advances in Payment Card Fraud Detection provides a thorough review of the state-of-the-art in fraud detection research that is ideal for graduate level readers and professionals. Through a comprehensive examination of fraud analytics that covers data collection, steps for cleaning and processing data, tools for analyzing data, and ways to draw insights, the book introduces state-of the-art payment fraud detection techniques. Other topics covered include machine learning techniques for the detection of fraud, including SOAR, and opportunities for future research, such as developing holistic approaches for countering fraud. Covers analytical approaches and machine learning for fraud detection Explores SOAR with full R-code and example obfuscated datasets in a freely-accessible companion website Introduces state-of the-art payment fraud detection techniques


Advances in Artificial Intelligence and Data Engineering

Advances in Artificial Intelligence and Data Engineering
Author: Niranjan N. Chiplunkar
Publisher: Springer
Total Pages: 0
Release: 2021-08-16
Genre: Technology & Engineering
ISBN: 9789811535161

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This book presents selected peer-reviewed papers from the International Conference on Artificial Intelligence and Data Engineering (AIDE 2019). The topics covered are broadly divided into four groups: artificial intelligence, machine vision and robotics, ambient intelligence, and data engineering. The book discusses recent technological advances in the emerging fields of artificial intelligence, machine learning, robotics, virtual reality, augmented reality, bioinformatics, intelligent systems, cognitive systems, computational intelligence, neural networks, evolutionary computation, speech processing, Internet of Things, big data challenges, data mining, information retrieval, and natural language processing. Given its scope, this book can be useful for students, researchers, and professionals interested in the growing applications of artificial intelligence and data engineering.


Machine Learning Applications for Accounting Disclosure and Fraud Detection

Machine Learning Applications for Accounting Disclosure and Fraud Detection
Author: Papadakis, Stylianos
Publisher: IGI Global
Total Pages: 270
Release: 2020-10-02
Genre: Business & Economics
ISBN: 179984806X

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The prediction of the valuation of the “quality” of firm accounting disclosure is an emerging economic problem that has not been adequately analyzed in the relevant economic literature. While there are a plethora of machine learning methods and algorithms that have been implemented in recent years in the field of economics that aim at creating predictive models for detecting business failure, only a small amount of literature is provided towards the prediction of the “actual” financial performance of the business activity. Machine Learning Applications for Accounting Disclosure and Fraud Detection is a crucial reference work that uses machine learning techniques in accounting disclosure and identifies methodological aspects revealing the deployment of fraudulent behavior and fraud detection in the corporate environment. The book applies machine learning models to identify “quality” characteristics in corporate accounting disclosure, proposing specific tools for detecting core business fraud characteristics. Covering topics that include data mining; fraud governance, detection, and prevention; and internal auditing, this book is essential for accountants, auditors, managers, fraud detection experts, forensic accountants, financial accountants, IT specialists, corporate finance experts, business analysts, academicians, researchers, and students.


Practical Machine Learning: A New Look at Anomaly Detection

Practical Machine Learning: A New Look at Anomaly Detection
Author: Ted Dunning
Publisher: "O'Reilly Media, Inc."
Total Pages: 65
Release: 2014-07-21
Genre: Computers
ISBN: 1491914181

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Finding Data Anomalies You Didn't Know to Look For Anomaly detection is the detective work of machine learning: finding the unusual, catching the fraud, discovering strange activity in large and complex datasets. But, unlike Sherlock Holmes, you may not know what the puzzle is, much less what “suspects” you’re looking for. This O’Reilly report uses practical examples to explain how the underlying concepts of anomaly detection work. From banking security to natural sciences, medicine, and marketing, anomaly detection has many useful applications in this age of big data. And the search for anomalies will intensify once the Internet of Things spawns even more new types of data. The concepts described in this report will help you tackle anomaly detection in your own project. Use probabilistic models to predict what’s normal and contrast that to what you observe Set an adaptive threshold to determine which data falls outside of the normal range, using the t-digest algorithm Establish normal fluctuations in complex systems and signals (such as an EKG) with a more adaptive probablistic model Use historical data to discover anomalies in sporadic event streams, such as web traffic Learn how to use deviations in expected behavior to trigger fraud alerts


Powering the Digital Economy: Opportunities and Risks of Artificial Intelligence in Finance

Powering the Digital Economy: Opportunities and Risks of Artificial Intelligence in Finance
Author: El Bachir Boukherouaa
Publisher: International Monetary Fund
Total Pages: 35
Release: 2021-10-22
Genre: Business & Economics
ISBN: 1589063953

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This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.


Learning from Imbalanced Data Sets

Learning from Imbalanced Data Sets
Author: Alberto Fernández
Publisher: Springer
Total Pages: 377
Release: 2018-10-22
Genre: Computers
ISBN: 3319980742

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This book provides a general and comprehensible overview of imbalanced learning. It contains a formal description of a problem, and focuses on its main features, and the most relevant proposed solutions. Additionally, it considers the different scenarios in Data Science for which the imbalanced classification can create a real challenge. This book stresses the gap with standard classification tasks by reviewing the case studies and ad-hoc performance metrics that are applied in this area. It also covers the different approaches that have been traditionally applied to address the binary skewed class distribution. Specifically, it reviews cost-sensitive learning, data-level preprocessing methods and algorithm-level solutions, taking also into account those ensemble-learning solutions that embed any of the former alternatives. Furthermore, it focuses on the extension of the problem for multi-class problems, where the former classical methods are no longer to be applied in a straightforward way. This book also focuses on the data intrinsic characteristics that are the main causes which, added to the uneven class distribution, truly hinders the performance of classification algorithms in this scenario. Then, some notes on data reduction are provided in order to understand the advantages related to the use of this type of approaches. Finally this book introduces some novel areas of study that are gathering a deeper attention on the imbalanced data issue. Specifically, it considers the classification of data streams, non-classical classification problems, and the scalability related to Big Data. Examples of software libraries and modules to address imbalanced classification are provided. This book is highly suitable for technical professionals, senior undergraduate and graduate students in the areas of data science, computer science and engineering. It will also be useful for scientists and researchers to gain insight on the current developments in this area of study, as well as future research directions.