International Journal of Financial, Accounting, and Management
Vol. 8 No. 2 (2026): September

A Decision Support System (DSS) for Fraud Detection Using Genetic Support Vector Machine (GSVM)

Chinedu Egbunike (Nnamdi Azikiwe University, Anambra, Nigeria)
Chidiebele Onyali (Nnamdi Azikiwe University, Anambra, Nigeria)
Kenebechukwu Okafor (Nnamdi Azikiwe University, Anambra, Nigeria)



Article Info

Publish Date
07 Sep 2026

Abstract

Purpose: This study developed a Decision Support System (DSS) for fraud prediction using a Genetic Support Vector Machine (GSVM), a hybrid model that employs a Genetic Algorithm (GA) to optimize Support Vector Machine (SVM) hyperparameters (C and γ) on financial ratios extracted from MachameRatios®. Research Methodology: A quantitative ex post facto design using data from 75 purposively sampled quoted manufacturing firms across six sectors over an 11-year panel (2011–2021) was assessed. Class imbalances were handled via Synthetic Minority Oversampling Technique (SMOTE), data were labelled via a performance-based threshold, and the hybrid framework was benchmarked against Decision Tree, Bayesian Networks, and Naïve Bayes classifiers. Results: The GSVM with an Radial Basis Function (RBF) kernel achieved an optimal 10-fold cross-validation accuracy of 87.91%, 89.4% sensitivity, and an Area Under the Receiver Operating Characteristic Curve (AUC-ROC) of 0.92, significantly outperforming the standard baseline models. Conclusions: The study concludes that the wrapper-based GSVM provides a highly accurate and parsimonious nonparametric pipeline for financial screening, establishing a mathematically robust foundation for automating corporate surveillance in regional markets. Limitations: This study relied solely on the financial ratio architectures of the sampled manufacturing firms. Contributions: The system addresses data imbalance via SMOTE and demonstrates that GA-optimized feature selection outperforms other methods.

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Journal Info

Abbrev

ijfam

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

This journal is the leading international journal in the field of Financial, Accounting, and Management. International Journal of Financial, Accounting, and Management (IJFAM) comprises a multitude of activities which together form one of the world's fastest-growing international sectors. This ...