Two-Stage Automobile Insurance Fraud Detection by Using Optimized Fuzzy C-Means Clustering and Supervised Learning

Sharmila Subudhi and Suvasini Panigrahi
Additional contact information
Sharmila Subudhi: ITER, Siksha 'O' Anusandhan Deemed to be University, India
Suvasini Panigrahi: Veer Surendra Sai University of Technology, India

International Journal of Information Security and Privacy (IJISP), 2020, vol. 14, issue 3, 18-37

Abstract: A novel two-stage automobile insurance fraud detection system is proposed that initially extracts a test set from the original imbalanced insurance dataset. A genetic algorithm based optimized fuzzy c-means clustering is then applied on the remaining data set for undersampling the majority samples by eliminating the outliers among them. Thereafter, the detection of the fraudulent claims occurs in two stages. In the first stage, each insurance record is passed to the clustering module that identifies the claim as genuine, malicious, or suspicious. The genuine and malicious samples are removed and only the suspicious instances are further scrutinized in the second stage by four trained supervised classifiers − Decision Tree, Support Vector Machine, Group Method for Data Handling and Multi-Layer Perceptron individually for final decision making. Extensive experiments and comparative analysis with another recent approach using a real-world automobile insurance dataset justifies the effectiveness of the proposed system.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/IJISP.2020070102 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jisp00:v:14:y:2020:i:3:p:18-37

Access Statistics for this article

International Journal of Information Security and Privacy (IJISP) is currently edited by Yassine Maleh

More articles in International Journal of Information Security and Privacy (IJISP) from IGI Global
Bibliographic data for series maintained by Journal Editor ().