Learning Transactional Behavioral Representations for Credit Card Fraud Detection

Yu Xie, Guanjun Liu, Chungang Yan, Changjun Jiang, Meng Chu Zhou, Maozhen Li

Research output: Contribution to journalArticlepeer-review

25 Scopus citations

Abstract

Credit card fraud detection is a challenging task since fraudulent actions are hidden in massive legitimate behaviors. This work aims to learn a new representation for each transaction record based on the historical transactions of users in order to capture fraudulent patterns accurately and, thus, automatically detect a fraudulent transaction. We propose a novel model by improving long short-term memory with a time-aware gate that can capture the behavioral changes caused by consecutive transactions of users. A current-historical attention module is designed to build up connections between current and historical transactional behaviors, which enables the model to capture behavioral periodicity. An interaction module is designed to learn comprehensive and rational behavioral representations. To validate the effectiveness of the learned behavioral representations, experiments are conducted on a large real-world transaction dataset provided to us by a financial company in China, as well as a public dataset. Experimental results and the visualization of the learned representations illustrate that our method delivers a clear distinction between legitimate behaviors and fraudulent ones, and achieves better fraud detection performance compared with the state-of-the-art methods.

Original languageEnglish (US)
Pages (from-to)1-14
Number of pages14
JournalIEEE Transactions on Neural Networks and Learning Systems
DOIs
StateAccepted/In press - 2022
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Software
  • Computer Science Applications
  • Computer Networks and Communications
  • Artificial Intelligence

Keywords

  • Attention
  • credit card fraud detection
  • long short-term memory (LSTM)
  • transactional behavioral representations

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