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IEEE Access
Article . 2024 . Peer-reviewed
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IEEE Access
Article . 2024
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Quantum Autoencoder for Enhanced Fraud Detection in Imbalanced Credit Card Dataset

Authors: Chansreynich Huot; Sovanmonynuth Heng; Tae-Kyung Kim; Youngsun Han;

Quantum Autoencoder for Enhanced Fraud Detection in Imbalanced Credit Card Dataset

Abstract

Credit card fraud detection is crucial for financial security which entails identifying unauthorized transactions that can result in significant financial losses. Detection is inherently challenging due to the rarity and indistinguishability of fraudulent transactions from genuine ones, which makes it an anomaly detection problem. Traditional detection systems struggle with the highly imbalanced nature of transaction datasets, where genuine transactions vastly outnumber fraudulent cases. In response to these challenges, we propose a novel detection model utilizing Quantum AutoEncoders-based Fraud Detection (QAE-FD). Our approach leverages quantum computing principles to enhance anomaly detection capabilities by encoding transaction data into compressed quantum states and optimizing the model against a loss function that evaluates the fidelity in flagging fraudulent transactions. The efficacy of the QAE-FD model is tested on a real-world credit card transaction dataset, achieving a G-mean of 0.946 and an AUC of 0.947 which demonstrates superior performance compared to existing models. Our results indicate that QAE-FD has not only higher accuracy in fraud detection but also better computational efficiency. The integration of quantum autoencoders is a promising advancement in the field of anomaly detection for credit card fraud, addressing the limitations of imbalanced datasets and offering a scalable solution for real-time detection systems.

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Keywords

quantum machine learning (QML), imbalanced dataset, credit card fraud detection, Anomaly detection, Electrical engineering. Electronics. Nuclear engineering, quantum autoencoder (QAE), TK1-9971

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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