Outlier or anomaly detection is the process through which datum/data with different properties from the rest of the data is/are identified. Their importance lies in their use in various domains such as fraud detection, network intrusion detection, and spam filtering. In this paper, we introduce a new outlier detection algorithm based on an ensemble method and distance-based data filtering with an iterative approach to detect outliers in unlabeled data. The ensemble method is used to cluster the unlabeled data and to filter out potential isolated outliers from the same by iteratively using a cluster membership threshold until the Dunn index score for clustering is maximized. The distance-based data filtering, on the other hand, removes the potential outlier clusters from the post-clustered data based on a distance threshold using the Euclidean distance measure of each data point from the majority cluster as the filtering factor. The performance of our algorithm is evaluated by applying it to 10 real-world machine learning datasets. Finally, we compare the results of our algorithm to various supervised and unsupervised outlier detection algorithms using Precision@n and F-score evaluation metrics.

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