Cryptocurrency Transaction Fraud Detection Based on Imbalanced Classification With Interpretable Analysis

This study introduces an interpretable imbalanced data classification method for detecting cryptocurrency transaction fraud. We address data imbalance using SMOTE oversampling and data augmentation through contrastive learning. Next, we introduce a Transformer-based deep learning model that learns sample relevance. The model undergoes pre-training with a contrastive loss and fine-tuning through Bayesian optimization to effectively extract high-dimensional, higher-order, and fraud-related features. We employ a SHAP-based interpreter along with attention scores to elucidate the role of various transaction features in fraud detection. Comparative results demonstrate the model's remarkable recall performance in identifying cryptocurrency transaction fraud. Furthermore, it achieves an excellent F1 value, striking a balance between accuracy and recall. This research not only enriches financial fraud detection but also enhances cryptocurrency transaction security, promotes market development, and contributes to economic stability and social security.

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Publication Details

Journal
International Journal of Intelligent Information Technologies
Published
2024-10-26
DOI
https://doi.org/10.4018/ijiit.357696
Citations
3
Primary Topic
Imbalanced Data Classification Techniques
Type
article
Field-Weighted Citation Impact
0.69
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article

Cryptocurrency Transaction Fraud Detection Based on Imbalanced Classification With Interpretable Analysis

Wenlong Jiang, Pei Yin, Like Zhang, Zi-jie Ma
3 citations
International Journal of Intelligent Information Technologies
Imbalanced Data Classification Techniques
0.69
article

Cryptocurrency Transaction Fraud Detection Based on Imbalanced Classification With Interpretable Analysis

Wenlong Jiang, Pei Yin, Like Zhang, Zi-jie Ma
article en
3 citations

Abstract

This study introduces an interpretable imbalanced data classification method for detecting cryptocurrency transaction fraud. We address data imbalance using SMOTE oversampling and data augmentation through contrastive learning. Next, we introduce a Transformer-based deep learning model that learns sample relevance. The model undergoes pre-training with a contrastive loss and fine-tuning through Bayesian optimization to effectively extract high-dimensional, higher-order, and fraud-related features. We employ a SHAP-based interpreter along with attention scores to elucidate the role of various transaction features in fraud detection. Comparative results demonstrate the model's remarkable recall performance in identifying cryptocurrency transaction fraud. Furthermore, it achieves an excellent F1 value, striking a balance between accuracy and recall. This research not only enriches financial fraud detection but also enhances cryptocurrency transaction security, promotes market development, and contributes to economic stability and social security.

International Journal of Intelligent Information TechnologiesVol. 20(1)
University of Shanghai for Science and Technology (CN)
Peace, Justice and strong institutions
Openalex Percentile: Top 24%
Imbalanced Data Classification Techniques
0.69
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Cryptocurrency Transaction Fraud Detection Based on Imbalanced Classification With Interpretable Analysis — Wenlong Jiang, Pei Yin, et al. · International Journal of Intelligent Information Technologies (2024) | TGRS Research Map | TGRS