Innovative credit card fraud detection: A hybrid model combining artificial neural networks and support vector machines

In recent years, escalating fraudulent activities have led to significant financial losses across industries, intensifying the critical challenge of fraud detection. This study introduces a novel hybrid model that combines artificial neural networks (ANN) with support vector machines (SVM) to construct a robust additive model for fraud detection. Emphasizing the Synthetic Minority Over-sampling Technique (SMOTE), our investigation addresses the imbalanced nature of fraud versus non-fraud transactions. The clear novelty of our research lies in the seamless integration of these two powerful tools, offering a comprehensive and effective solution to the challenges posed by credit card fraud detection. Furthermore, our study stands out by emphasizing the collaborative synergy between ANN and SVM, particularly through the integration of multiple kernels, which improves the adaptability and accuracy of the proposed hybrid model. We conducted a thorough examination of 284,807 anonymized transactions, placing special emphasis on comparing the hybrid approach's performance and showcasing its superiority over traditional methodologies in the realm of fraud detection.