DeLClustE: Protecting Users from Credit-Card Fraud Transaction via the Deep-Learning Cluster Ensemble

Abstract

Fraud is the unlawful acquisition of valuable assets gained via intended misrepresentation. It is a crime committed by either an internal/external user, and associated with acts of theft, embezzlement, and larceny. The proliferation of credit cards to aid financial inclusiveness has its usefulness alongside it attracting malicious attacks for gains. Attempts to classify fraudulent credit card transactions have yielded formal taxonomies as these attacks seek to evade detection. We propose a deep learning ensemble via a profile hidden Markov model with a deep neural network, which is poised to effectively classify credit-card fraud with a high degree of accuracy, reduce errors, and timely fashion. The result shows the ensemble effectively classified benign transactions with a precision of 97 percent. Thus, we posit a new scheme that is more logical, intuitive, reusable, exhaustive, and robust in classifying such fraudulent transactions based on the attack source, cause(s), and attack time gap.