Digital payment fraud detection methods in digital ages and Industry 4.0


The advent of the digital economy and Industry 4.0 enables financial organizations to adapt their processes and mitigate the risks and losses associated with the fraud. Machine learning algorithms facilitate effective predictive models for fraud detection for Industry 4.0. This study aims to identify an efficient and stable model for fraud detection platforms to be adapted for Industry 4.0. By leveraging a real credit card transaction dataset, this study proposes and compares five different learning models: logistic regression, decision tree, k-nearest neighbors, random forest, and autoencoder. Results show that random forest and logistic regression outperform the other algorithms. Besides, the undersampling method and feature reduction using principal component analysis could enhance the results of the proposed models. The outcomes of the studies positively ascertain the effectiveness of using features selection and sampling methods for tackling business problems in the new age of digital economy and industrial 4.0 to detect fraudulent activities.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School
College of Business and Social Sciences > Aston Business School > Operations & Information Management
Additional Information: © 2022 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license 4.0 Funding Information: This work is partly supported by VC Research (VCR 0000158) for Prof Chang.
Uncontrolled Keywords: Cybersecurity for Industry 4.0,Digital payment,Fraud detection,Industry 4.0,Machine learning,Control and Systems Engineering,Computer Science(all),Electrical and Electronic Engineering
Publication ISSN: 0045-7906
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://www.sci ... 0465?via%3Dihub (Publisher URL)
PURE Output Type: Article
Published Date: 2022-05-01
Published Online Date: 2022-03-08
Accepted Date: 2022-01-10
Authors: Chang, Victor (ORCID Profile 0000-0002-8012-5852)
Doan, Le Minh Thao
Di Stefano, Alessandro
Sun, Zhili
Fortino, Giancarlo

Export / Share Citation


Additional statistics for this record