@inproceedings{29e2e2015b1047f7807b5a53c402ed46,
title = "Cost-sensitive decision making for online fraud management",
abstract = "Every online transaction comes with a risk and it is the merchant{\textquoteright}s liability to detect and stop fraudulent transactions. Merchants utilize various mechanisms to prevent and manage fraud such as automated fraud detection systems and manual transaction reviews by expert fraud analysts. Many proposed solutions mostly focus on fraud detection accuracy and ignore financial considerations. Also, highly effective manual review process is overlooked. We propose Profit Optimizing Neural Risk Manager (PONRM), a decision maker that (a) constitutes optimal collaboration between machine learning models and human expertise under industrial constraints, (b) is cost and profit sensitive. We suggest directions on how to characterize fraudulent behavior and assess the risk of a transaction. We show that our framework outperforms cost-sensitive and cost-insensitive baselines on three real-world merchant datasets.",
keywords = "Cost-sensitive learning, E-commerce, Fraud detection, Risk management",
author = "Yildirim, {Mehmet Yigit} and Mert Ozer and Hasan Davulcu",
year = "2018",
month = jan,
day = "1",
doi = "10.1007/978-3-319-92007-8_28",
language = "English (US)",
isbn = "9783319920061",
series = "IFIP Advances in Information and Communication Technology",
publisher = "Springer New York LLC",
pages = "323--336",
booktitle = "Artificial Intelligence Applications and Innovations - 14th IFIP WG 12.5 International Conference, AIAI 2018, Proceedings",
note = "14th IFIP WG 12.5 International Conference on Artificial Intelligence Applications and Innovations, AIAI 2018 ; Conference date: 25-05-2018 Through 27-05-2018",
}