Enhancing Credit Card Fraud Detection Using P-XGBoost: A Comparative Study Classical Machine Learning Techniques

Abstract

Abstract: Ability of debit card companies to detect and prevent fraudulent transactions is crucial to safeguard customers from unauthorized charges. Data Science, particularly Machine Learning, plays a pivotal role in addressing this challenge. This project aims to demonstrate the application of machine learning in Credit debit Fraud Detection by modeling a dataset of past credit card transactions, distinguishing fraudulent ones from legitimate ones. The objective is to achieve a fraudulent transactions while minimizing false positives. Debit Card Fraud Detection is a classic classification issue. A research focuses on data analysis, preprocessing, and the utilization of XGBoost on Credit Card Transaction data. To prevent overfitting, grid search is employed to fine-tune the models' hyperparameters. The performed of XGBoost and P-XGBoost is compared with further usual machine learning techniques. Surprisingly, P-XGBoost best XGBoost in fraud detection, presenting a viewpoint for effectively identifying fraudulent behavior while ensuring the privacy of clients.