This study uses stacked generalization, which is a two-step process of combining machine learning methods, called meta or super learners, for improving the performance of algorithms in step one (by minimizing the error rate of each individual algorithm to reduce its bias in the learning set) and then in step two inputting the results into the meta learner with its stacked blended output (demonstrating improved performance with the weakest algorithms learning better). The method is essentially an enhanced cross-validation strategy. Although the process uses great computational resources, the resulting performance metrics on resampled fraud data show that increased system cost can be justified. A fundamental key to fraud data is that it is inherently not systematic and, as of yet, the optimal resampling methodology has not been identified. Building a test harness that accounts for all permutations of algorithm sample set pairs demonstrates that the complex, intrinsic data structures are all thoroughly tested. Using a comparative analysis on fraud data that applies stacked generalizations provides useful insight needed to find the optimal mathematical formula to be used for imbalanced fraud data sets.
Institute for Information Transmission Problems (Kharkevich Institute) RAS（俄罗斯科学院信息传输问题研究所（哈尔克维奇研究所））
In many real-world binary classification tasks (e.g. detection of certain objects from images), an available dataset is imbalanced, i.e., it has much less representatives of a one class (a minor class), than of another. Generally, accurate prediction of the minor class is crucial but it's hard to achieve since there is not much information about the minor class. One approach to deal with this problem is to preliminarily resample the dataset, i.e., add new elements to the dataset or remove existing ones. Resampling can be done in various ways which raises the problem of choosing the most approp…
KU Leuven（鲁汶大学）；Applied Statistics GmbH（应用统计有限公司）；University of Antwerp（安特卫普大学）
A major challenge when trying to detect fraud is that the fraudulent activities form a minority class which make up a very small proportion of the data set. In most data sets, fraud occurs in typically less than 0.5% of the cases. Detecting fraud in such a highly imbalanced data set typically leads to predictions that favor the majority group, causing fraud to remain undetected. We discuss some popular oversampling techniques that solve the problem of imbalanced data by creating synthetic samples that mimic the minority class. A frequent problem when analyzing real data is the presence of anom…
Machine learning has automated much of financial fraud detection, notifying firms of, or even blocking, questionable transactions instantly. However, data imbalance starves traditionally trained models of the content necessary to detect fraud. This study examines three separate factors of credit card fraud detection via machine learning. First, it assesses the potential for different sampling methods, undersampling and Synthetic Minority Oversampling Technique (SMOTE), to improve algorithm performance in data-starved environments. Additionally, five industry-practical machine learning algorith…
Various problems of any credit card fraud detection based on machine learning come from the imbalanced aspect of transaction datasets. Indeed, the number of frauds compared to the number of regular transactions is tiny and has been shown to damage learning performances, e.g., at worst, the algorithm can learn to classify all the transactions as regular. Resampling methods and cost-sensitive approaches are known to be good candidates to leverage this issue of imbalanced datasets. This paper evaluates numerous state-of-the-art resampling methods on a large real-life online credit card payments d…
We aim at developing and improving the imbalanced business risk modeling via jointly using proper evaluation criteria, resampling, cross-validation, classifier regularization, and ensembling techniques. Area Under the Receiver Operating Characteristic Curve (AUC of ROC) is used for model comparison based on 10-fold cross validation. Two undersampling strategies including random undersampling (RUS) and cluster centroid undersampling (CCUS), as well as two oversampling methods including random oversampling (ROS) and Synthetic Minority Oversampling Technique (SMOTE), are applied. Three highly int…
AGH University of Science and Technology（AGH科技大学）；National Research Council of Canada（加拿大国家研究委员会）；Wrocław University of Science and Technology（弗罗茨瓦夫科技大学）
Real-world classification domains, such as medicine, health and safety, and finance, often exhibit imbalanced class priors and have asynchronous misclassification costs. In such cases, the classification model must achieve a high recall without significantly impacting precision. Resampling the training data is the standard approach to improving classification performance on imbalanced binary data. However, the state-of-the-art methods ignore the local joint distribution of the data or correct it as a post-processing step. This can causes sub-optimal shifts in the training distribution, particu…
Data imbalance remains one of the open challenges in the contemporary machine learning. It is especially prevalent in case of medical data, such as histopathological images. Traditional data-level approaches for dealing with data imbalance are ill-suited for image data: oversampling methods such as SMOTE and its derivatives lead to creation of unrealistic synthetic observations, whereas undersampling reduces the amount of available data, critical for successful training of convolutional neural networks. To alleviate the problems associated with over- and undersampling we propose a novel two-st…
With growing credit card transaction volumes, the fraud percentages are also rising, including overhead costs for institutions to combat and compensate victims. The use of machine learning into the financial sector permits more effective protection against fraud and other economic crime. Suitably trained machine learning classifiers help proactive fraud detection, improving stakeholder trust and robustness against illicit transactions. However, the design of machine learning based fraud detection algorithms has been challenging and slow due the massively unbalanced nature of fraud data and the…
Canadian University Dubai（迪拜加拿大大学）；Cairo University（开罗大学）
Imbalanced data is a frequently encountered problem in machine learning. Despite a vast amount of literature on sampling techniques for imbalanced data, there is a limited number of studies that address the issue of the optimal sampling ratio. In this paper, we attempt to fill the gap in the literature by conducting a large scale study of the effects of sampling ratio on classification accuracy. We consider 10 popular sampling methods and evaluate their performance over a range of ratios based on 20 datasets. The results of the numerical experiments suggest that the optimal sampling ratio is b…
Guaranteeing the security of transactional systems is a crucial priority of all institutions that process transactions, in order to protect their businesses against cyberattacks and fraudulent attempts. Adversarial attacks are novel techniques that, other than being proven to be effective to fool image classification models, can also be applied to tabular data. Adversarial attacks aim at producing adversarial examples, in other words, slightly modified inputs that induce the Artificial Intelligence (AI) system to return incorrect outputs that are advantageous for the attacker. In this paper we…
Q-SYNTH: Hybrid Quantum-Classical Adversarial Augmentation for Imbalanced Fraud Detection
Quantum Physics and Spintronics Team, LPMC, Faculty of Sciences Ben M'sick（量子物理与自旋电子团队，拉瓦尔学院，本·马西克科学学院）；eBRAIN Lab, Division of Engineering, New York University Abu Dhabi (NYUAD)（eBRAIN实验室，工程学院，纽约大学阿布扎比分校（NYUAD））；Center for Quantum and Topological Systems (CQTS), NYUAD Research Institute（量子与拓扑系统中心（CQTS），NYUAD研究机构）
AGH University of Science and Technology（AGH科技大学）；Wrocław University of Science and Technology（弗罗茨瓦夫理工大学）；Virginia Commonwealth University（弗吉尼亚联邦大学）
The imbalanced data classification is one of the most crucial tasks facing modern data analysis. Especially when combined with other difficulty factors, such as the presence of noise, overlapping class distributions, and small disjuncts, data imbalance can significantly impact the classification performance. Furthermore, some of the data difficulty factors are known to affect the performance of the existing oversampling strategies, in particular SMOTE and its derivatives. This effect is especially pronounced in the multi-class setting, in which the mutual imbalance relationships between the cl…
Imbalanced data classification problem has always been a popular topic in the field of machine learning research. In order to balance the samples between majority and minority class. Oversampling algorithm is used to synthesize new minority class samples, but it could bring in noise. Pointing to the noise problems, this paper proposed a denoising autoencoder neural network (DAE) algorithm which can not only oversample minority class sample through misclassification cost, but it can denoise and classify the sampled dataset. Through experiments, compared with the denoising autoencoder neural net…
University of New South Wales（新南威尔士大学）；University of Technology Sydney（悉尼科技大学）
Credit risk prediction is an effective way of evaluating whether a potential borrower will repay a loan, particularly in peer-to-peer lending where class imbalance problems are prevalent. However, few credit risk prediction models for social lending consider imbalanced data and, further, the best resampling technique to use with imbalanced data is still controversial. In an attempt to address these problems, this paper presents an empirical comparison of various combinations of classifiers and resampling techniques within a novel risk assessment methodology that incorporates imbalanced data. T…
University of L’Aquila（拉奎拉大学）；School Of AI（人工智能学院）
Despite the enormous amount of data, particular events of interest can still be quite rare. Classification of rare events is a common problem in many domains, such as fraudulent transactions, malware traffic analysis and network intrusion detection. Many studies have been developed for malware detection using machine learning approaches on various datasets, but as far as we know only the MTA-KDD'19 dataset has the peculiarity of updating the representative set of malicious traffic on a daily basis. This daily updating is the added value of the dataset, but it translates into a potential due to…
National Digital Switching System Engineering and Technological Research Center（国家数字交换系统工程技术研究中心）；University of Toronto（多伦多大学）；Fudan University（复旦大学）
With the rapid development of mobile networks, the people's social contacts have been considerably facilitated. However, the rise of mobile social network fraud upon those networks, has caused a great deal of distress, in case of depleting personal and social wealth, then potentially doing significant economic harm. To detect fraudulent users, call detail record (CDR) data, which portrays the social behavior of users in mobile networks, has been widely utilized. But the imbalance problem in the aforementioned data, which could severely hinder the effectiveness of fraud detectors based on graph…
This paper evaluates XGboost's performance given different dataset sizes and class distributions, from perfectly balanced to highly imbalanced. XGBoost has been selected for evaluation, as it stands out in several benchmarks due to its detection performance and speed. After introducing the problem of fraud detection, the paper reviews evaluation metrics for detection systems or binary classifiers, and illustrates with examples how different metrics work for balanced and imbalanced datasets. Then, it examines the principles of XGBoost. It proposes a pipeline for data preparation and compares a …
University of Granada（格拉纳达大学）；University of Jaén（哈恩大学）；King Abdulaziz University（阿卜杜勒阿齐兹国王大学）
The learning from imbalanced data is a deeply studied problem in standard classification and, in recent times, also in multilabel classification. A handful of multilabel resampling methods have been proposed in late years, aiming to balance the labels distribution. However these methods have to face a new obstacle, specific for multilabel data, as is the joint appearance of minority and majority labels in the same data patterns. We proposed recently a new algorithm designed to decouple imbalanced labels concurring in the same instance, called REMEDIAL (\textit{REsampling MultilabEl datasets by…
The performance of classification algorithms with a massive and highly imbalanced data stream depends upon efficient balancing strategy. Some techniques of balancing strategy have been applied in the past with Batch data to resolve the class imbalance problem. This paper proposes a new incremental data balancing framework which can work with massive imbalanced data streams. In this paper, we choose Racing Algorithm as an automated data balancing technique which optimizes the balancing techniques. We applied Random Forest classification algorithm which can deal with the massive data stream. We …
National Research Council of Canada（加拿大国家研究委员会）；American University（美利坚大学）
Class imbalance is a problem of significant importance in applied deep learning where trained models are exploited for decision support and automated decisions in critical areas such as health and medicine, transportation, and finance. The challenge of learning deep models from imbalanced training data remains high, and the state-of-the-art solutions are typically data dependent and primarily focused on image data. Real-world imbalanced classification problems, however, are much more diverse thus necessitating a general solution that can be applied to tabular, image and text data. In this pape…
A learning classifier must outperform a trivial solution, in case of imbalanced data, this condition usually does not hold true. To overcome this problem, we propose a novel data level resampling method - Clustering Based Oversampling for improved learning from class imbalanced datasets. The essential idea behind the proposed method is to use the distance between a minority class sample and its respective cluster centroid to infer the number of new sample points to be generated for that minority class sample. The proposed algorithm has very less dependence on the technique used for finding clu…
Data imbalance remains one of the factors negatively affecting the performance of contemporary machine learning algorithms. One of the most common approaches to reducing the negative impact of data imbalance is preprocessing the original dataset with data-level strategies. In this paper we propose a unified framework for imbalanced data over- and undersampling. The proposed approach utilizes radial basis functions to preserve the original shape of the underlying class distributions during the resampling process. This is done by optimizing the positions of generated synthetic observations with …
In many application domains such as medicine, information retrieval, cybersecurity, social media, etc., datasets used for inducing classification models often have an unequal distribution of the instances of each class. This situation, known as imbalanced data classification, causes low predictive performance for the minority class examples. Thus, the prediction model is unreliable although the overall model accuracy can be acceptable. Oversampling and undersampling techniques are well-known strategies to deal with this problem by balancing the number of examples of each class. However, their …
Swinburne University of Technology（斯威本科技大学）；Deakin University（迪肯大学）；Harvard Medical School（哈佛医学院）
Biomedical data are widely accepted in developing prediction models for identifying a specific tumor, drug discovery and classification of human cancers. However, previous studies usually focused on different classifiers, and overlook the class imbalance problem in real-world biomedical datasets. There are a lack of studies on evaluation of data pre-processing techniques, such as resampling and feature selection, on imbalanced biomedical data learning. The relationship between data pre-processing techniques and the data distributions has never been analysed in previous studies. This article ma…
Dalhousie University（达尔豪斯大学）；University of Ottawa（渥太华大学）；National Research Council of Canada（加拿大国家研究委员会）
In this paper we address imbalanced binary classification (IBC) tasks. Applying resampling strategies to balance the class distribution of training instances is a common approach to tackle these problems. Many state-of-the-art methods find instances of interest close to the decision boundary to drive the resampling process. However, under-sampling the majority class may potentially lead to important information loss. Over-sampling also may increase the chance of overfitting by propagating the information contained in instances from the minority class. The main contribution of our work is a new…
In this paper, we propose a diversity-aware ensemble learning based algorithm, referred to as DAMVI, to deal with imbalanced binary classification tasks. Specifically, after learning base classifiers, the algorithm i) increases the weights of positive examples (minority class) which are "hard" to classify with uniformly weighted base classifiers; and ii) then learns weights over base classifiers by optimizing the PAC-Bayesian C-Bound that takes into account the accuracy and diversity between the classifiers. We show efficiency of the proposed approach with respect to state-of-art models on pre…
University of Granada（格拉纳达大学）；University of Jaén（哈恩大学）
Multilabel classification is an emergent data mining task with a broad range of real world applications. Learning from imbalanced multilabel data is being deeply studied latterly, and several resampling methods have been proposed in the literature. The unequal label distribution in most multilabel datasets, with disparate imbalance levels, could be a handicap while learning new classifiers. In addition, this characteristic challenges many of the existent preprocessing algorithms. Furthermore, the concurrence between imbalanced labels can make harder the learning from certain labels. These are …
Université Libre de Bruxelles（布鲁塞尔自由大学）；Worldline（世界线）
Credit card fraud detection is a very challenging problem because of the specific nature of transaction data and the labeling process. The transaction data is peculiar because they are obtained in a streaming fashion, they are strongly imbalanced and prone to non-stationarity. The labeling is the outcome of an active learning process, as every day human investigators contact only a small number of cardholders (associated to the riskiest transactions) and obtain the class (fraud or genuine) of the related transactions. An adequate selection of the set of cardholders is therefore crucial for an …
PLA Strategy Support Force Information Engineering University（中国人民解放军战略支援部队信息工程大学）
The Graph Neural Network (GNN) has been widely used for graph data representation. However, the existing researches only consider the ideal balanced dataset, and the imbalanced dataset is rarely considered. Traditional methods such as resampling, reweighting, and synthetic samples that deal with imbalanced datasets are no longer applicable in GNN. This paper proposes an ensemble model called Boosting-GNN, which uses GNNs as the base classifiers during boosting. In Boosting-GNN, higher weights are set for the training samples that are not correctly classified by the previous classifier, thus ac…
Data imbalance, that is the disproportion between the number of training observations coming from different classes, remains one of the most significant challenges affecting contemporary machine learning. The negative impact of data imbalance on traditional classification algorithms can be reduced by the data preprocessing techniques, methods that manipulate the training data to artificially reduce the degree of imbalance. However, the existing data preprocessing techniques, in particular SMOTE and its derivatives, which constitute the most prevalent paradigm of imbalanced data preprocessing, …
Machine learning has opened up new tools for financial fraud detection. Using a sample of annotated transactions, a machine learning classification algorithm learns to detect frauds. With growing credit card transaction volumes and rising fraud percentages there is growing interest in finding appropriate machine learning classifiers for detection. However, fraud data sets are diverse and exhibit inconsistent characteristics. As a result, a model effective on a given data set is not guaranteed to perform on another. Further, the possibility of temporal drift in data patterns and characteristics…
Efficient Hybrid Oversampling and Intelligent Undersampling for Imbalanced Big Data Classification
Universidad de los Andes（洛斯安第斯大学）；Facultad de Ingeniería y Ciencias Aplicadas（工程与应用科学学院）；Instituto Sistemas Complejos de Ingeniería (ISCI)（工程复杂系统研究所）；School of Economics and Business（经济与商业学院）；University of Chile（智利大学）
United International University（联合国际大学）；Bangladesh University of Engineering and Technology（孟加拉国工程技术大学）
Class imbalance problem is commonly faced while developing machine learning models for real-life issues. Due to this problem, the fitted model tends to be biased towards the majority class data, which leads to lower precision, recall, AUC, F1, G-mean score. Several researches have been done to tackle this problem, most of which employed resampling, i.e. oversampling and undersampling techniques to bring the required balance in the data. In this paper, we propose neural network based algorithms for undersampling. Then we resampled several class imbalanced data using our algorithms and also some…
National University of Singapore（新加坡国立大学）；University of Chicago（芝加哥大学）
Supervised learning from training data with imbalanced class sizes, a commonly encountered scenario in real applications such as anomaly/fraud detection, has long been considered a significant challenge in machine learning. Motivated by recent progress in curriculum and self-paced learning, we propose to adopt a semi-supervised learning paradigm by training a deep neural network, referred to as SelectNet, to selectively add unlabelled data together with their predicted labels to the training dataset. Unlike existing techniques designed to tackle the difficulty in dealing with class imbalanced …
In this work, we consider the problem of imbalanced data in a regression framework when the imbalanced phenomenon concerns continuous or discrete covariates. Such a situation can lead to biases in the estimates. In this case, we propose a data augmentation algorithm that combines a weighted resampling (WR) and a data augmentation (DA) procedure. In a first step, the DA procedure permits exploring a wider support than the initial one. In a second step, the WR method drives the exogenous distribution to a target one. We discuss the choice of the DA procedure through a numerical study that illust…
Imbalanced datasets are ubiquitous. Classification performance on imbalanced datasets is generally poor for the minority class as the classifier cannot learn decision boundaries well. However, in sensitive applications like fraud detection, medical diagnosis, and spam identification, it is extremely important to classify the minority instances correctly. In this paper, we present a novel technique based on genetic algorithms, GenSample, for oversampling the minority class in imbalanced datasets. GenSample decides the rate of oversampling a minority example by taking into account the difficulty…
The UK anti-fraud charity Fraud Advisory Panel (FAP) in their review of 2016 estimates business costs of fraud at 144 billion, and its individual counterpart at 9.7 billion. Banking, insurance, manufacturing, and government are the most common industries affected by fraud activities. Designing an efficient fraud detection system could avoid losing the money; however, building this system is challenging due to many difficult problems, e.g.imbalanced data, computing costs, etc. Over the last three decades, there are various research relates to fraud detection but no agreement on what is the best…
Imbalanced class distribution is a common problem in a number of fields including medical diagnostics, fraud detection, and others. It causes bias in classification algorithms leading to poor performance on the minority class data. In this paper, we propose a novel method for balancing the class distribution in data through intelligent resampling of the minority class instances. The proposed method is based on generating new minority instances in the neighborhood of the existing minority points via a gamma distribution. Our method offers a natural and coherent approach to balancing the data. W…
Feedzai；Faculdade de Ciências da Universidade do Porto（波尔图大学理学院）；INESCTEC Universidade do Porto（波尔图大学系统与计算机工程、技术与科学研究所）
Evaluating new techniques on realistic datasets plays a crucial role in the development of ML research and its broader adoption by practitioners. In recent years, there has been a significant increase of publicly available unstructured data resources for computer vision and NLP tasks. However, tabular data -- which is prevalent in many high-stakes domains -- has been lagging behind. To bridge this gap, we present Bank Account Fraud (BAF), the first publicly available privacy-preserving, large-scale, realistic suite of tabular datasets. The suite was generated by applying state-of-the-art tabul…
Class imbalanced datasets are common in real-world applications that range from credit card fraud detection to rare disease diagnostics. Several popular classification algorithms assume that classes are approximately balanced, and hence build the accompanying objective function to maximize an overall accuracy rate. In these situations, optimizing the overall accuracy will lead to highly skewed predictions towards the majority class. Moreover, the negative business impact resulting from false positives (positive samples incorrectly classified as negative) can be detrimental. Many methods have b…
