Shuffled shepherd political optimization‐based deep learning method for credit card fraud detection

Abstract

Summary Digital transactions based on credit cards are gradually increasing concept due to expediency. The amount of fraudulent transactions has intensely enlarged in modern days, because of the fast development of e‐services, namely e‐finance, mobile payments, and e‐commerce as well as the promotion of credit cards. Criminal fraud behaviors and user's payment behaviors are frequently varying, thus performance improvement of the fraud identification method and its stability are more challenging processes. The Shuffled Shepherd Political Optimization‐based Deep Residual network (SSPO‐based DRN) scheme is established for credit card fraud identification in this research. The SSPO is developed by merging the Political Optimization (PO) and Shuffled Shepherd Optimization Algorithm (SSOA). The quantile normalization model is an effective preprocessing technique, which normalizes the data for effective detection. Moreover, fisher score and class information gain effectively select the required features. Data augmentation is employed for increasing the data size, thereby the detection performance is improved. The Deep Residual Network (DRN) is employed for credit card fraud recognition, which is trained by devised SSPO algorithm. The SSPO‐based DRN approach achieved enhanced performance with testing sensitivity of 0.9279, specificity of 0.9023, and accuracy of 0.9120.