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Applying Migrating Birds Optimization to Credit Card Fraud Detection

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Trends and Applications in Knowledge Discovery and Data Mining (PAKDD 2013)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 7867))

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Abstract

We discuss how the Migrating Birds Optimization algorithm (MBO) is applied to statistical credit card fraud detection problem. MBO is a recently proposed metaheuristic algorithm which is inspired by the V flight formation of the migrating birds and it was shown to perform very well in solving a combinatorial optimization problem, namely the quadratic assignment problem. As analyzed in this study, it has a very good performance in the fraud detection problem also when compared to classical data mining and genetic algorithms. Its performance is further increased by the help of some modified neighborhood definitions and benefit mechanisms.

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Author information

Authors and Affiliations

  1. Faculty of Engineering, Industrial Engineering Department, Özyeğin University, Istanbul, Turkey

    Ekrem Duman

  2. Intertech, Decision Support Systems Department, Istanbul, Turkey

    Ilker Elikucuk

Authors
  1. Ekrem Duman
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  2. Ilker Elikucuk
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Editor information

Editors and Affiliations

  1. School of Information Technology and Mathematical Sciences, University of South Australia, 1 Mawson Lakes Boulevard, 5095, Adelaide, SA, Australia

    Jiuyong Li

  2. Advanced Analytics Institute, University of Technology, 2-12 Blackfriars Street, Chippendale, Blackfriars Campus, 2008, Sydney, NSW, Australia

    Longbing Cao  & Can Wang  & 

  3. Department of Electrical and Computer Engineering, National University of Singapore, 4 Engineering Drive 3, 117576, Singapore, Singapore

    Kay Chen Tan

  4. School of Automation, Guangdong University of Technology, No. 100 Waihuan Xi Road, Panyu District, 510006, Guangzhou, China

    Bo Liu

  5. School of Computing Science, Simon Fraser University, 8888 University Drive, V5A 1S6, Burnaby, BC, Canada

    Jian Pei

  6. Department of Computer Science and Information Engineering, National Cheng Kung University, No.1, University Road, 701, Tainan, Taiwan

    Vincent S. Tseng

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Duman, E., Elikucuk, I. (2013). Applying Migrating Birds Optimization to Credit Card Fraud Detection. In: Li, J., et al. Trends and Applications in Knowledge Discovery and Data Mining. PAKDD 2013. Lecture Notes in Computer Science(), vol 7867. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40319-4_36

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  • DOI: https://doi.org/10.1007/978-3-642-40319-4_36

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-40318-7

  • Online ISBN: 978-3-642-40319-4

  • eBook Packages: Computer ScienceComputer Science (R0)

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