A distributed deep neural network model for credit card fraud detection

Yu-Tian Lei, Chao-Qun Ma, Yi-Shuai Ren, Xun-Qi Chen, Seema Narayan and Anh Ngoc Quang Huynh

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: This paper develops a distributed neural network model (DDNN) for detecting credit card fraud to federate credit card transaction data among different financial institutions. In addition, the convergence of the DDNN model is achieved by introducing a model optimization algorithm. The results demonstrate that (1) The use of a distributed model can avoid privacy leakage and data handling costs; (2) The DDNN model accelerates the convergence of the model through simultaneous computation of multiple clients; (3) The DDNN model detects credit card fraud better than multiple types of centralized models.

Keywords: Credit card fraud; Fraud detection; Deep neural network model; Distributed model (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323009194

DOI: 10.1016/j.frl.2023.104547

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