Open AccessMultilayer perceptron artificial neural networks-based model for credit card fraud detection
Author(s) -
Bassam Kasasbeh,
Balqees Aldabaybah,
Hadeel Ahmad
Publication year - 2022
Publication title -
indonesian journal of electrical engineering and computer science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.241
H-Index - 17
eISSN - 2502-4760
pISSN - 2502-4752
DOI - 10.11591/ijeecs.v26.i1.pp362-373
Subject(s) - credit card , credit card fraud , computer science , artificial neural network , multilayer perceptron , mean squared error , measure (data warehouse) , asset (computer security) , artificial intelligence , process (computing) , data mining , sensitivity (control systems) , machine learning , computer security , engineering , statistics , mathematics , payment , electronic engineering , world wide web , operating system
Nowadays, credit card fraud has emerged as a major problem. People are becoming increasingly using credit cards to pay for their transactions, it has become more popular and essential in our lives. Fraudsters are developing new strategies and techniques over time, and it is not easy for humans to manually check out all transactions. The cost of fraudulent transactions is significant and without prevention mechanisms it is rising. Finding the best methodology to detect fraudulent transactions is a crucial asset to the industry to reduce the fraud financial loss. Artificial neural networks (ANN) technique is considered as one of the effective techniques that has proved its efficiency in detecting credit card fraud transactions with high precision and minimum cost. In this paper, we propose a multilayer perceptron (MLP) ANN-based model solution to improve the accuracy of the detection process. The performance of the methodology is measured based on the precision, sensitivity, specificity, accuracy, F-measure, area under curve (AUC) and root mean square error (RMSE). Moreover, we illustrate the performance results of these measures with a descriptive analysis. Experimental results have shown that the proposed ANN-based model is efficient and does improve the accuracy of the detection of fraudulent transactions.