Automatic Card Fraud Detection Based on Decision Tree Algorithm

Figures & data

Figure 1. The evolution of various card-related fraud in the Netherlands during 2005–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 2. The evolution of various card-card fraud in Portugal during 2005–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 3. The evolution of various card-related fraud in Denmark during 2005–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 4. The evolution of various card-related fraud in Sweden during 2005–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 5. The evolution of various card-related fraud in the UK during 2005–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 6. The evolution of total fraud in the EU and the UK during 2006–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 7. Total fraud threats in selected European countries. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 8. The evolution of various card-related fraud in the Romania during 2005–2021. Source: FICO (2023), https://www.fico.com/europeanfraud/.

Figure 9. Category-based number of fraudulent transactions from the first dataset. Dataset source: Kaggle (2020).

Figure 10. Number of fraud victims by age from the first dataset. Dataset source: Kaggle (2020).

Figure 11. Number of credit card frauds by occupation from the first dataset. Dataset source: Kaggle (2020).

Figure 12. Number of credit card frauds by month from the first dataset. Dataset source: Kaggle (2020).

Figure 13. Number of credit card frauds by year from the first dataset. Dataset source: Kaggle (2020).

Figure 14. Number of fraudulent transactions by amount from the first dataset. Dataset source: Kaggle (2020).

Figure 15. Number of non-fraudulent transactions by amount from the first dataset. Dataset source: Kaggle (2020).

Figure 16. Number of fraudulent transactions by amount from the second dataset. Dataset source: Kaggle (2021).

Figure 17. Number of fraudulent transactions by amount from the second dataset. Dataset source: Kaggle (2021).

Figure 18. Number of fraudulent transactions by month from the second dataset. Dataset source: Kaggle (2021).

Figure 19. Number of fraudulent transactions by month from the second dataset. Dataset source: Kaggle (2021).

Figure 20. Transactions channels of fraudulent transaction. Dataset source: Kaggle (2021).

Table 1. The importance of the attributes used in the training process of the machine learning algorithm based on decision trees for the first dataset analyzed.

Name of the attribute	Importance	Name of the attribute	Importance
Transacted amount	0,717	Online grocery shopping	0,020
Gender of the card owner	0,002	POS grocery shopping	0,001
Population	0,020	Health and fitness-related shopping	0,002
Age	0,029	Household goods shopping	0,015
The month of the transaction	0,006	Children goods shopping	0,005
The year of the transaction	0,001	Online mixed shopping	0,001
Latitude	0,012	POS mixed shopping	0,020
Longitude	0,012	Personal cosmetics shopping	0,004
Eating out	0,018	Online clothing shopping	0,007
Car fuel shopping	0,073	POS clothing shopping	0,003
Travel-related shopping		0,022

Table 2. The importance of the attributes used in the training process of the machine learning algorithm based on decision trees for the second dataset analyzed.

Name of the attribute	Importance
User	0.072
Card	0.017
Year	0.039
Month	0.024
Day	0.027
Amount	0.104
Use Chip	0.08
Merchant Name	0.501
Zip Code	0.054
Hour	0.048
Minute	0.029

Table 3. Evaluation metrics values obtained in case of both datasets used.

Dataset	Accuracy	F1-Score	Precision	Recall
1st dataset	96%	97%	99%	94%
2nd dataset	99%	99%	99%	99%

FICO. 2023. European fraud. Accessed April 9, 2023. https://www.fico.com/europeanfraud/.

 Google Scholar

Kaggle. 2020. Credit card transactions fraud detection dataset. Accessed May 11, 2023. https://www.kaggle.com/datasets/kartik2112/fraud-detection.

 Google Scholar

Kaggle. 2021. Credit card transactions. Accessed September 24, 2023. https://www.kaggle.com/datasets/ealtman2019/credit-card-tran-sactions.

 Google Scholar

Data Availability Statement

The data that support the findings of this study are openly available in Credit Card Transactions repository in Kaggle at https://www.kaggle.com/datasets/ealtman2019/credit-card-transactions. respectively in Credit Card Transactions Fraud Detection Dataset repository in Kaggle at https://www.kaggle.com/datasets/kartik2112/fraud-detection.