Credit Card Fraud Detection Using Deep Neural Network With Shapley Additive Explanations

Chidinma Faith Onyeoma, HUSNAIN RAFIQ, Daniel Jeremiah, VINH-THONG TA, MUHAMMAD USMAN

Research output: Chapter in Book/Report/Conference proceedingConference proceeding (ISBN)peer-review

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Abstract

Credit card fraud is a significant challenge for financial security, with traditional detection systems often lacking accuracy and interpretability. Current methods fall short of capturing complex fraud patterns. This research evaluates the effectiveness of deep neural networks in fraud detection, including Convolutional Neural Networks (CNN), Long Short Term Memory networks (LSTM), Recurrent Neural Networks (RNN), Multilayer Perceptrons (MLP), and Deep Belief Networks (DBN). We employ a comprehensive dataset of up to 284,000 transactions for training and further incorporate two external datasets consisting of up to 1.3 million transactions to perform rigorous testing. According to our experiments, the CNN model outperformed LSTM, RNN, MLP and DBN by achieving a remarkable accuracy of up to 99%. Furthermore, we employ Adam optimiser to enhance model performance and SHAP (SHapley Additive exPlanations) analysis to improve the interpretability of the best-performing classifier and to gain insights into feature importance and model decisions. The proposed approach outperforms existing methods, combining high accuracy with model interpretability, and contributes to advancing fraud detection for financial security.
Original languageEnglish
Title of host publicationProceedings of 21st International Conference on Frontiers of Information Technology (FIT'24)
PublisherIEEE
Pages1-6
Publication statusAccepted/In press - 21 Oct 2024
Event21st International Conference on Frontiers of Information Technology - Islamabad , Pakistan
Duration: 9 Dec 202410 Dec 2024
https://fit.edu.pk/

Conference

Conference21st International Conference on Frontiers of Information Technology
Abbreviated titleFIT'24
Country/TerritoryPakistan
CityIslamabad
Period9/12/2410/12/24
Internet address

Keywords

  • Credit Card Detection
  • Fraud Detection
  • Deep Learning
  • Neural Networks
  • SHapley Additive exPlanations

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