Feature Selection Techniques for Enhancing Credit Card Fraud Detection Performance: A Hybrid Metaheuristic Approach Using Nature-Inspired Algorithms

Abstract: The surge in credit card usage has led to a parallel increase in fraudulent transactions, necessitating advanced detection systems. Traditional methods encounter challenges with high-dimensional and imbalanced datasets. This paper proposes a comprehensive approach integrating metaheuristic algorithms and deep learning techniques to enhance fraud detection accuracy. The first contribution, the Rock Hyrax Swarm Optimization Feature Selection (RHSOFS) algorithm, draws inspiration from the collective behaviors of rock hyrax swarms to effectively select relevant features from high-dimensional datasets. RHSOFS identifies an optimal subset of features critical for fraud detection through supervised machine learning. Complementing this, the second contribution leverages a hybrid deep learning model. Beginning by organizing transactional data and constructing a Logical Graph of Behavior Profile (LGBP) to abstract transaction details, the Modified Butterfly Optimization Algorithm (MBOA) selects important features from the dataset. The hybrid model, integrating Convolutional Neural Networks (CNN) and Recurrent Neural Networks (RNN), establishes rational connections between transactional characteristics, enhancing detection performance. To evaluate the approach, comparative efficiency analyses against existing methods, including Differential Evolutionary Feature Selection (DEFS), Genetic Algorithm Feature Selection (GAFS), Particle Swarm Optimization Feature Selection (PSOFS), and Ant Colony Optimization Feature Selection (ACOFS), are conducted. Results demonstrate the superiority of the approach in terms of both reliability and recognition rate, validated through rigorous statistical testing. The proposed hybrid approach signifies a significant advancement in credit card fraud detection systems, offering enhanced accuracy and efficiency in combating fraudulent activities amidst the growing complexity of transactional datasets.