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October 3, 2025AppliedMath7 citationsOpen Access

Detecting Imbalanced Credit Card Fraud via Hybrid Graph Attention and Variational Autoencoder Ensembles

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IMIbomoiye Domor MienyeEEEbenezer EsenoghoMCModisane Cameron

Key Points

  • The hybrid framework achieves an F1-score improvement of up to 15%, indicating its superior effectiveness in fraud detection.
  • Utilizing both variational autoencoder anomaly scores and graph attention network embeddings captures critical fraud patterns.
  • Experiments on European Credit Card and IEEE-CIS datasets validated the model's capability with F1-scores exceeding 0.980.
  • Combining anomaly detection techniques with graph-based methods highlights a promising solution for dealing with imbalanced credit card fraud.

Abstract

Credit card fraud detection remains a major challenge due to severe class imbalance and the constantly evolving nature of fraudulent behaviors. To address these challenges, this paper proposes a hybrid framework that integrates a Variational Autoencoder (VAE) for probabilistic anomaly detection, a Graph Attention Network (GAT) for capturing inter-transaction relationships, and a stacking ensemble with XGBoost for robust prediction. The joint use of VAE anomaly scores and GAT-derived node embeddings enables the model to capture both feature-level irregularities and relational fraud patterns. Experiments on the European Credit Card and IEEE-CIS Fraud Detection datasets show that the proposed approach outperforms baseline models by up to 15% in F1-score, achieving values above 0.980 with AUCs reaching 0.995. These results demonstrate the effectiveness of combining unsupervised anomaly detection with graph-based learning within an ensemble framework for highly imbalanced fraud detection problems.

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Cite This Study

Mienye et al. (2025) studied this question.

synapsesocial.com/papers/68e040f7a99c246f578b3c96https://doi.org/10.3390/appliedmath5040131
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