Advanced Fraud Detection in Card-Based Financial Systems Using a Bidirectional LSTM-Gru Ensemble Model

This article addresses the challenges of fraud in card-based financial systems and proposes effective detection and prevention strategies. By leveraging recent data analytics and real-time monitoring, the study aims to enhance transaction security and integrity. The authors review existing fraud detection methodologies, emerging trends, and the evolving tactics of fraudsters, emphasizing the importance of collaboration among financial institutions, regulatory agencies, and technology providers. Our proposed solution is an ensemble model combining Bidirectional Gated Recurrent Unit (BiGRU) and Bidirectional Long Short-Term Memory (BiLSTM) networks, designed to capture complex transactional patterns more effectively. Comparative analysis of six machine learning classifiers—AdaBoost, Naïve Bayes, Decision Tree, Logistic Regression, Random Forest, and Voting—demonstrates that our BiLSTM-BiGRU ensemble model outperforms traditional methods, achieving a fraud detection performance score of 89.22%. This highlights the advanced deep learning model's superior ability to enhance the robustness and reliability of fraud detection systems.