Credit Card Fraud Detection based on Deep Learning Models

Credit card fraud detection (FD) protects consumers and financial institutions by identifying suspicious or unauthorized transactions. To improve security and reduce false positives, fraud detection systems can analyze transaction data patterns in real time using advanced machine learning (ML) and deep learning (DL). This paper exploits DL models to detects transactional data which includes anomalies through Recurrent Neural Network (RNN), Long Short-Term Memory (LSTM), and Gated Recurrent Unit (GRU) to verify data and mitigate fraud. The models used precision, recall, F1-score, and AUC on a balanced shared 559856-record Kaggle repository dataset. The RNN model detected anomalies with 99.39% accuracy, 0.9939 F1-score, and excellent recall. RNN shows promise as a real-time anomaly detection method with high performance and low computational cost.