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Journal : JOURNAL OF ICT APLICATIONS AND SYSTEM

Anomaly-Based Financial Fraud Detection Using Autoencoder A Case Study on the Kaggle Credit Card Dataset Andri Nata; Dudes Manalu; Jaya Tata Hardinata; Peniel Sam Putra Sitorus
Journal of ICT Applications System Vol 4 No 1 (2025): Journal of ICT Aplications and System
Publisher : Lembaga Penelitian dan Pengabdian Masyarakat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56313/jictas.v4i1.431

Abstract

Financial fraud remains a critical challenge for banking systems and digital payment platforms worldwide. With the rapid growth of electronic transactions, effective fraud detection mechanisms are essential to ensure security and user trust. This study explores the application of an unsupervised deep learning model—Autoencoder—for anomaly-based financial fraud detection. Utilizing the publicly available Kaggle Credit Card Fraud Detection dataset, which comprises 284,807 transactions including 492 fraudulent cases, the model is trained exclusively on legitimate transactions to learn typical behavioral patterns. Prior to training, the dataset underwent feature anonymization using Principal Component Analysis (PCA), and numerical columns such as "Amount" and "Time" were normalized using Min-Max Scaling. The Autoencoder architecture includes three encoder and decoder layers with ReLU activations, and is optimized using the Adam optimizer with Mean Squared Error (MSE) as the loss function. Experimental results show that the model achieves a classification accuracy of 94% and an AUC score of 0.931, indicating strong potential for detecting anomalies. However, the precision for identifying fraudulent transactions remains relatively low (5%), reflecting the challenges posed by imbalanced datasets. Despite this, the study demonstrates that Autoencoder offers a promising foundation for fraud detection systems, with further improvements possible through model integration and hybrid ensemble techniques
Co-Authors Abdi Rahim Damanik Adeita A. Ndraha Agus Perdana Windarto Andini, Yulia Andri Nata Arda Pakpahan Arminarahmah, Nur Astri Veranita Sinaga Aulia Ichwanda Ramadhan Azarya N J Siahaan Batubara, Lokot Ridwan Chairani, Yulia Chintya Carolina Situmorang Damanik, Abdi Rahim Debby Febriani R. Saragih Deddy Wahyudin Purba Dedi Handoko Dedi Handoko Dedi Suhendro Dedy Hartama Dedy Hartama Dewi, Rafiqa Dian Lestari Hutapea Dinda Zefanya Simanjuntak Dudes Manalu Efendi, Elfin Eka Desriani Aritonang Eka Irawan Eka Irawan Eka Irawan Ema Deloris Silaban Exaudi Sirait, Debora Fadillah Alwi Pambudi Ferri Ojak Immanuel Pardede Ferri Ojak Immanuel Pardede Gayus Simarmata GS , Achmad Daengs Hartama, Dedy Hendry Qurniawan Hendry Qurniawan Heru Satria Tambunan Heru Satria Tambunan Heru Satria Tambunan Heru Satria Tambunan, Heru Satria I Irawan Ilham Syahputra Saragih Irfan Sudahri Damanik Juli Antasari Br Sinaga Kiki Aidi Saputra Lumbantobing, Gilbert Batahi M Safii M. Fauzan Marina Rajagukguk Melda Veby Ristella Munthe Muhammad Arifullah Muhammad Azri Muhammad Fauzan Muhammad Ridwan Lubis Muhammad Ridwan Lubis Muhammad Safii Nadeak, Vincentius Danu Bona Arta Nur Arminarahmah Ojak Immanuel Pardede, Ferri Okprana, Harly Peniel Sam Putra Sitorus Perdamaian Pernando Sitanggang Purba, Yuegilion Pranayama Purnama Nuraini Putri Mai Sarah Tarigan Putri Mai Sarah Tarigan Putriyani Matondang Qurniawan, Hendry Rektor Sianturi, Rektor Riama Ester Angelina Sihombing Rick Hunter Simanungkalit, Rick Hunter Riska Oktavia Safii, M Safruddin, S Saifullah Saifullah Saifullah Saifullah Sam Putra Sitorus, Peniel Samuel Alex Lubis Saragih, Reagan Surbakti Sibagariang, Susy Alestriani Simbolon, Maria Etty Simorangkir, Marhite Sinaga, Christa Voni Roulina Sinta Maria Sinaga Siti Hadija Sitorus, Peniel Sam Putra Situmorang, Eduward Suhada Suhada, Suhada Sundari Retno Andani Surbakti Saragih, Reagan Tarigan, Putri Mai Sarah Vina Merina Br Sianipar Vivi Auladina Voni Roulina Sinaga, Christa Wanto, Anjar Widodo Saputra Winanjaya, Riki Yuegilion Pranavarna Purba Yuegilion Pranayama Purba Yuegilion Pranayama Purba Yulia Andini Yuliana Nainggolan Yuni Arista Saragih Zulaini Masruro Nasution