A Comprehensive Study: Evaluating Machine Learning Algorithms with Credit Card Transaction Data
摘要
The financial sector places significant emphasis on the detection of credit card fraud, and machine learning techniques have emerged as a promising solution. Nevertheless, questions regarding the interpretability of machine learning models and their resilience against adversarial attacks within the realm of credit card fraud detection persist. This study aims to bridge these gaps and underscore their pivotal role in advancing the field. It involves a comprehensive analysis of a credit card transaction dataset and the development of multiple machine learning models for fraud detection. Python scripts leverage well-known libraries such as Pandas, NumPy, Seaborn, Scikit-Learn, TensorFlow, and Matplotlib for data processing, visualization, and machine learning tasks. For fraud detection, the dataset is partitioned into training and testing sets, and three machine learning models, namely XGBoost, Random Forest, and Support Vector Machine (SVM), are applied. Performance metrics, encompassing accuracy, sensitivity (recall), F1-score, Matthews Correlation Coefficient (MCC), Balanced Classification Rate (BCR), and confusion matrices, are computed and presented. Additionally, a Long Short-Term Memory (LSTM) neural network is deployed for sequence-based fraud detection. This research offers a comprehensive roadmap for analyzing credit card transaction data and constructing machine learning models to detect fraudulent activities, underscoring the importance of data exploration and model evaluation in fraud detection systems. It emphasizes the significance of feature engineering in enhancing the effectiveness of fraud detection models and equips decision-makers with the ability to make informed choices based on model predictions.