Application of Machine Learning Methods to Detect Fraud in Bank Transactions

Renat M. Khamitov, Svetlana M. Kutsenko and Elena A. Saltanaeva
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Renat M. Khamitov: Kazan State Power Engineering University
Svetlana M. Kutsenko: Kazan State Power Engineering University
Elena A. Saltanaeva: Kazan State Power Engineering University

Economics. Information Technologies, 2026, vol. 53, issue 1, 111-121

Abstract: The article touches on the connection between the mass distribution of intellectual technologies and their possible increased use in illegal actions. The authors focus on development and analysis of machine learning methods for detecting fraudulent transactions in the financial sector. The relevance of the topic is explained by the ongoing evolution of fraudulent schemes, which requires innovative technologies to be applied for ensuring financial security. The paper considers modern approaches to data processing, scaling and elimination of data asymmetry. The study covers model training using four algorithms: logistic regression, decision tree, random forest method, and gradient descent. To assess the quality of the model, the ROC-AUC metric was used, as well as characteristics such as accuracy, completeness and F1 measure. The logistic regression model performed best, achieving a ROC-AUC value of 0.975 on the test dataset. The results of the work highlight the practical value of machine learning models as a reliable tool for minimizing the risks associated with fraudulent transactions.

Keywords: fraudulent transactions; intelligent systems; machine learning methods; model accuracy; algorithm efficiency; cross-validation (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eul:ecoinf:v:53:y:2026:i:1:p:111-121

DOI: 10.52575/2687-0932-2026-53-1-111-121

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