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Journal : International Journal Of Science, Technology

Fraud Detection in Credit Card Transactions Using HDBSCAN, UMAP and SMOTE Methods Setiawan, Rudy; Tjahjono, Budi; Firmansyah, Gerry; Akbar, Habibullah
International Journal of Science, Technology & Management Vol. 4 No. 5 (2023): September 2023
Publisher : Publisher Cv. Inara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46729/ijstm.v4i5.929

Abstract

Credit card abuse and fraud in credit card transactions pose a serious threat to financial companies and consumers. To overcome this problem, accurate and effective fraud detection is essential. In this study, we propose an approach that combines HDBSCAN (Hierarchical Density-Based Spatial Clustering of Applications with Noise), UMAP (Uniform Manifold Approximation and Projection), and SMOTE (Synthetic Minority Over-sampling Technique) methods to detect fraud in credit card transactions. The HDBSCAN method is used to group transactions based on their spatial density, allowing identification of suspicious groups of transactions. UMAP is used to reduce the dimension of transaction data, thus enabling better visualization and more efficient data analysis. In addition, we use SMOTE to overcome class imbalances, namely differences in the number of fraudulent and non-fraudulent transactions. In our experiments, we used. In this experiment, we used a dataset of credit card transactions that included both fraudulent and non-fraudulent transactions. The experimental results show that the proposed approach is able to detect fraud with high accuracy. The HDBSCAN method is able to effectively identify suspicious groups of transactions, while UMAP helps in better understanding and visualization of data. The use of SMOTE has successfully overcome class imbalances, resulting in more balanced fraud detection results between fraud and non-fraud. The results of this study show that the combination of HDBSCAN, UMAP, and SMOTE methods is effective in detecting fraud in credit card transactions. This approach can help financial companies identify suspicious transactions with high accuracy, reduce fraud losses, and improve the security of credit card transactions.
Co-Authors A. Arif Dwi Nugroho Ade Sjafruddin Ade Sjafrudin, Ade Akbar, Habibullah Alexius Hanavie Andilas, Devi Destiani Andy Pangeran, Andy Angeline angeline Anik Juniwati Anis Setyaningrum Arif Tirta Kusuma, Arif Tirta Ats-Tsauri, Muhammad Ibrahim Audi Christian Tedja Tee Bita Parga Zen Budi Tjahjono Carolus Boromeus Sene, Carolus Boromeus Chandra, Melvin Christ Fernaldy Chandra, David Christine Tjokrorahardjo, Christine Daniel Hotber Nadapdap, Daniel Hotber David Wiyono Elita Mega Selvia Wijaya Erlangga E C Oematan Erry Koriyanti Ferdinand Litan Florencia Debrina Soebagio Gerry Firmansyah Gregorius Satia Budhi Handiyanto, Ramada Aji Hanemas Panita Montiara Harry Patmadjaja Hendro Poerbo Prasetiya Henny Sutjiono, Henny Idha Royani Ika Hidayati, Permata Inna, Maria Jazimatul Husna Jeffry Liongtono Winoto Jorena Jorena, Jorena Kuriawan, Yudhi La Ode Muh Munadi Liliana Liliana Martin , Martua Feizal Lamora Sihombing Meme Susilowati Michael Gunawan Iskak Moh. Farid Nurul Anwar Newa, Debora Rambu Nugroho, Didit Prasetyo Nurul Qomariyah, Ismi Nurwegiono, Muhammad Octavianus Cakra Satya Ote, Yohanis Ana Prayogo, Michael Antonie Purnomo Purnomo Purnomo Purnomo, ' Putra Jaya, Jeremy Qomariah, Ismi Nurul Rachmasari, Fitria Melati Rio Febrianto Arifendi, Rio Febrianto Ronny Hartono Widjaja Salsabiila, Elsa Santoso, Gregorius Allan Serli Wijaya Soetam Rizky Wicaksono Solli, Indira Detari Stefanus Gunawan Sugiarto, Hansel Davin Suhartono . Susilo Ribut Anggarbeni, Susilo Ribut Timotius Denny Setiawan Tri Ngudi Wiyatno Widodo, Panut Wilujeng, Lilis Lestari Wimpy Santosa Wirduni, Mohammad Imam Wulandari, Deniar Yeni Safitri Yovita Vanesa Romuty Yudhi Kurniawan Yuswanto, '